Discharging student loans in bankruptcy is very difficult. You have to meet the requirements of an outdated, Draconian test to prove that paying the loans would cause you “undue hardship.”
Many people file bankruptcy to get rid of other crushing debt, like credit card balances and medical bills, but also have student loans that they can’t repay. They are in financial difficulty, but not so horrendously so as to be able to wipe out the loans. So they file to get a fresh start.
Sometimes the Bankruptcy Fresh Start Doesn't Work Out
But then, instead of things getting better for them financially, years down the road things get worse! They become disabled, lose their job and simply cannot find another one after months or years of looking, or cannot work in their profession due to loss of licensure, etc.
But There Is Good News
The good news is, you can go back and try again for the discharge! That’s right, you can reopen your bankruptcy, show that your situation now qualifies as “undue hardship” even though they did not when you originally filed, and try to get the loans discharged!
The bankruptcy code allows you to reopen a previously resolved and closed case to seek discharge from a student loan. One of the reasons for this is that you cannot file a new bankruptcy to address a debt that existed at the time of the prior filing.
The test is still tough, and you still have to take it, but at least you can wait until you have a chance of passing.
What Do I Do If I Qualify?
If you live in Burlington, Camden, Gloucester, Salem or Cumberland County, New Jersey, you have previously filed for bankruptcy and obtained a discharge, need to get rid of your student loans, and are ready to take action, then call me at 856-432-4113 to schedule an appointment for an analysis and evaluation of your situation.
Looking for a Plan B for your student loans in case you still don't pass the bankruptcy discharge test? We can talk about that too! There may be another, simpler, solution to your student loan problems that we can explore.
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