Qualifying for Discharge of Your Federal Student Loans in Bankruptcy

You've probably heard it many times: You can't discharge student loans in bankruptcy! Well, I'm here to tell you . . . 

That's simply not true!

You can indeed discharge student loans, but it just hasn't been easy. You have to prove "undue hardship" to be successful. This means showing that being required to make the regular monthly payment on the loan would prevent you from maintaining a minimal standard of living for the foreseeable future (a "persistent state of affairs").

That's not easy to do! That's because terms like "minimal standard of living" and "persistent state of affairs" are very subjective terms. The same is true for proving that you have made a "good faith effort to pay."

But all that changed for federal loans in the Fall of 2022 when President Biden created objective guidelines for defining these terms that the U.S. attorneys must use in evaluating your case in bankruptcy. This makes it much easier for you to determine whether you may qualify (and thus discharge the loans) even before you file the bankruptcy!

But how do you know if you qualify?

In an episode of my webinar series Lunch with a Lawyer on January 16, 2023, I discussed President Biden's guidelines for discharging federal student loans in bankruptcy in an effort to help you do just that. In that webinar I discussed: 

  • What the Guidelines Are
  • How They Create Objective Standards for Proving Undue Hardship
  • How You Can Claim This in Your Bankruptcy
  • Whether Bankruptcy is the Right Solution

Want to learn all this? No problem! Just fill out this contact form, and I will send you the link to the video for you to watch yourself. Then you will know whether bankruptcy can help you shed that burdensome student debt!

Don't wait! Act now! If Trump becomes President next year, he may rescind these guidelines and make it tougher again! Don't miss this opportunity!

Sign Up Here to Get the Video!

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.