The popular belief that student loan debt is untouchable in bankruptcy may lead you to believe that you’re stuck with your educational debt and judgments forever. But that belief is wrong. While it may be difficult, student loans can be discharged sometimes. The process is complicated and involves overcoming a threshold much higher than credit card debt, medical bills, and other consumer debts to wipe the loans out.
Related: How to Prove Undue Hardship for Student Loans
Despite those challenges, filing bankruptcy may be your only option to get rid of the student loan judgment. I file a few of these cases across the country every year — usually against National Collegiate Student Loan Trust, Sallie Mae, or SoFi. Typically, one of two things occurs:
We work out a deal that lets my client make monthly payments over several years, usually with 0% interest.
The lender consents to the debt being discharged.
Depending on the facts of your case, you may obtain either outcome. You may also be able to convince a judge you meet the standard to discharge your student loans. Private student loans are often easier to erase in bankruptcy because they don’t offer income-driven repayment plans, deferment, forbearance, and so on. Read more about private student loan bankruptcy.
Speak with a student loan bankruptcy lawyer in your area, or book a call with me.
Related: How to Get Rid of Private Student Loans