Get Answers To Your Questions About Student Loan Debt And Bankruptcy
More and more Americans in New York are living with overwhelming student loan debt. These heavy payments are contributing to an increasing amount of bankruptcies. Even though it is one of the biggest contributors to financial hardship leading to bankruptcy, it is very rare that a court will allow student loan debt to be discharged in bankruptcy like other forms of debt.
There are a few exceptions, however. At New York Lawyers Team, our attorneys will help you understand your options for dealing with student loan debt in bankruptcy. Undue hardship is one of the criteria that must be proven before a discharge of student loan debt will occur. If you can demonstrate to the court that the student loan debt is creating an undue hardship for you and your family, there is a possibility it could be wiped out. Our lawyers have the experience in bankruptcy court needed to help you prove this.
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In many cases, the court will look at three main factors to determine if it will allow you to discharge your student debt:
- Poverty and income — If you cannot support yourself and your dependents while making student loan payments, the court may allow them to be discharged.
- Persistence — The court also looks at how long you will likely continue in your current situation and earning potential, compared to the time it would take to pay off the loan.
- Good faith — Lastly, the court will look at the effort that you've made so far to pay back the loans.
While these are the main criteria the court looks at, they are not the only factors and proving these three is not a guarantee that the court will allow the loans to be discharged. We can help you put together the best possible argument, however, for having your payments discharged.
Call us today to learn more about Student Loan Debt and Bankruptcy in New York today.