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Discharding Student Loans in Minnesota
Minneapolis Bankruptcy Attorney
At The Law Firm of Minneapolis Bankruptcy Attorney, one of the most common questions we are asked is “why can’t I discharge my student loans?
Unfortunately, discharging these expenses during a bankruptcy was largely banned due to abuse of the system by recent graduates. The actions of these irresponsible youths had a negative effect on many honest debtors who are in desperate need of a financial break. But there is hope. Your Minneapolis bankruptcy attorney can help you discharge your student loans if you are able to show that they are placing undue hardships on you.
Since the law regarding student loan discharges changed in 1998, the Federal Student Aid Ombudsman has decreed that those wishing to discharge these debts must meet three specific criteria. They are:
- Will repaying the loans prevent you from enjoying a minimal standard of living?
- Will it be too difficult for you to maintain a minimal standard of living during the repayment period?
- Have you made an honest attempt at repaying the loan before filing for bankruptcy? This usually involves paying off the debts for at least 5 years.
Your Minneapolis bankruptcy lawyer may be able to help you prove that you meet these requirements and that paying off the loan will drastically affect your quality of life and those of the people who rely on you financially.
If you are unable to have your student loan discharged, your Minneapolis bankruptcy attorney may still be able to help you handle the repayment process. We may be able to work with the loan agency to get a deferment on your payments or our credit counselors can help you work to better manage your finances to pay back the loan without spreading yourself too thin.
If you are having trouble paying back your student loans, a Minneapolis bankruptcy lawyer from our firm may be able to help. Please contact our office today and schedule a consultation.