Higher education is expensive, and you may be one of the hundreds of college students who graduated with a significant amount of student loan debt. At the time of signing your loan agreement, you may have given little thought to how you would pay it off in the future, and many people find themselves in similar situations. If you are drowning in student loan debt, even years after graduating, you may be looking for a way out.
Like many other Ohio graduates, you want to know your options for dealing with student loan debt when you are unable to pay or make full payments on a regular basis. Bankruptcy is a beneficial option for people who are struggling with certain types of debt, but is it the right choice for you?
Student loans and bankruptcy
Unfortunately, the current bankruptcy laws do not allow for the discharge of student loan debt except in very rare cases. While this may seem like a frustrating setback, you may still benefit from bankruptcy protection. You may not be able to get rid of your student loans through this process, but you may be able to shed the burden of other types of debt, which could provide a measure of financial freedom once the process is complete.
What can bankruptcy do for me?
Bankruptcy may not be able to get rid of your student loan debt, but there are many benefits to considering this legal step if you are struggling with other types of secured and unsecured debt. Chapter 7 or Chapter 13 bankruptcy could offer you the following benefits:
- Halts contact from debt collectors
- Discharges debt through either liquidation and repayment (Chapter 7) or repayment over time (Chapter 13)
- Stops wage garnishment, foreclosure and other collections efforts
- Allows you to emerge from bankruptcy with a fresh financial start
Bankruptcy is not the best choice for everyone, but it could be a way that you can deal with other debts so that you are finally able to pay off your student loans in a timely manner.
Are you facing undue hardship?
In rare cases, you may be able to discharge student loan debt through bankruptcy by proving that you are facing undue hardship. Whether you are suddenly disabled or facing other serious circumstances, you might be able to prove to the court that you have no way to pay off the loans, either today or in the future.
If you believe that you may qualify, you will find it beneficial to speak with an attorney about the possibility of proving hardship. No matter what your situation may entail, you will find it helpful to speak with a lawyer about how you can benefit from bankruptcy.