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It’s been said that it’s impossible for student loans to be discharged, even if an individual files for bankruptcy. Although not technically true, the bar to do so is considerably high. However, there are legal steps a person may take to try to do it. 
If someone files for Chapter 7 or Chapter 13 bankruptcy, it is possible to have his student loans discharged. That’s only if a person can prove to the bankruptcy court that repaying his or her loans would cause “undue hardship” to him or any of his dependents. Most courts will use a 3-part test to determine if this undue hardship is met. In order to have his loans discharged, one must meet ALL 3 requirements of the test:

• If the debtor is forced to repay the loan, he or she would not be able to maintain a minimal standard of living.
• There is evidence that this hardship will continue for a significant portion of the loan repayment period.
• He made good-faith efforts to repay the loan before filing bankruptcy (generally the debtor has been in repayment for at least five years).

Creditors are entitled to challenge a person’s discharge request. If his creditors show up to challenge him, the process may be significantly costlier and more time consuming. That’s because each side will have to hire expert witnesses to help prove their cases.
Before seeking to have a loan discharged through bankruptcy, one must consider the extreme difficulty of the task. For example, let’s say someone went to law school but is unable to find steady work as an attorney. Therefore, he takes a job as a waiter making much less than he expected when he first took out the loans. No court will consider him to be in undue hardship. The discharge is really meant for two individuals. The first is one who is unable to work any longer. The other is one who has dependents and will be unable to buy minimal necessities if he must repay the loans.
The good news is that if someone’s loans are discharged successfully, he will not have to repay any portion of them. He will also be eligible to apply for federal student aid in the future.
Adrienne Woods
The Law Offices of Adrienne Woods, P.C.
[email protected]
917.447.4321

By: Marshall G. Reissman
A recent article in the New York Times recently about consumers facing bankruptcy with much more debt than previous debtors. If you are facing this same type of situation, please call us and schedule a free consultation. We want to help you in this time of uncertainty and doubt
 
 
 

By: Marshall G. Reissman
A recent article in the New York Times recently about consumers facing bankruptcy with much more debt than previous debtors. If you are facing this same type of situation, please call us and schedule a free consultation. We want to help you in this time of uncertainty and doubt
 
 
 
The post Consumers Filing Bankruptcy Face Bigger Challenges appeared first on St. Petersburg Law Blog.

Seattle area consumers who are now attempting to evaluate whether to keep their homes through either bankruptcy or modification or let the house go and take their chances on the rental market should keep in mind that rents will be rising in the Seattle area.
A recent report shows that apartment rents will rise almost three percent between September and March. In and of itself this would not be so horrible if Seattle rents had not already risen eight percent in the last year alone. When you consider that the average rent for a one-bedroom apartment is already $1802, the evaluation of whether to keep a home or at least put off the foreclosure process becomes even more difficult to wade through.
If you live in the Seattle area and want help evaluating whether to use Chapter 13 Bankruptcy as a tool for either keeping your home of extending your time in it, please call me directly at 206-674-4559 or set an appointment with us at our Seattle Office.
 
The original post is titled Keep in Mind Rising Seattle Rents When Evaluating Whether to Put off Foreclosure , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .