St. Louis Bankruptcy Center


Are Student Loans Dischargeable with St Louis Bankruptcy?

Student Loans, Uncategorized

A common question in consultations with my clients is whether they can discharge their private and federal student loans by filing St Louis bankruptcy. Unlike most debt, the answer is not yes or no, but maybe. Dischargeability of student loan debt is determined on a case by case basis and there are several factors the court may consider to determine dischargeability.

The rule of thumb over the past few years is that student loans will generally be discharged in cases where the debtor will have no real potential for future income or that repayment of the student loan debt will place an undue burden on the debtor or debtor’s dependants. In most cases where a debtor is able to receive a discharge, the debtor can no longer work and is only receiving social security income. Basically, if you can still work for a reasonable amount of time you most likely will not be able to discharge student loans. Where you work is not relevant in this determination.

Finally, if you have only federal loans the likelihood of discharging student loans decreases. Federal loans now offer income based repayment plans and many courts have ruled that if you are eligible for these programs a discharge will not be granted. Private student loans are more likely to be discharged because of limited repayment programs offered by private student loan companies.

There are options to control the repayment of student loans through a chapter 13 St Louis bankruptcy, which can be explained by a Missouri bankruptcy attorney. If you are having difficulty paying your student loans or you are unable to work, consulting with a Missouri bankruptcy attorney is recommended.

To discuss your financial options with student loans, get a Free Consultation with our St Louis bankruptcy attorney.


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