Pursuing higher education to better oneself and one’s job prospects seems like a solid plan, but it comes at a cost. As it currently stands, over 43 million people in the United States, many right here in Tennessee, carry student loan debt. It is the second biggest form of debt in the country, trailing just behind mortgages. What many want to know is, can bankruptcy help with student loan debt?
Bankruptcy may help, but not in the way most people might think it would. Generally, student loan debt does not qualify for discharge in bankruptcy. The court is more likely to discharge credit card, medical or other forms of debt. This can still help one’s student loan debt situation, though, by freeing up funds that can then be put toward paying down this debt.
What many people really want to know, is it ever possible for student loans to be discharged through bankruptcy? It is not entirely impossible to achieve. Some people have been successful at having their student loans discharged or reduced, but they’ve had to prove that repaying these loans is virtually impossible. They’ve had to show the court that they have tried to find higher-paying jobs and taken other steps to better their financial situations so they can repay the debt; they’ve just been unsuccessful.
Will it always be so hard to achieve student loan debt relief? Only time will tell, as bankruptcy laws may change. Until then, there are still debt relief options that may ease one’s financial burden. Tennessee residents who are buried in student loans and other forms of debt can turn to an experienced bankruptcy law attorney to find out what relief options are available to them and assistance pursuing the option that makes the most sense for their situation.