Bankruptcy and Student Loans

Although many different types of debts may be discharged during bankruptcy proceedings, student loan debt is typically considered to be non-dischargeable debt. This means that unless you can prove that your student loan debt causes undue hardship on you or your family, you will still have to make regular payments, despite going through bankruptcy.

There are several options that individuals can choose to help resolve their student loan debts, even if they cannot be discharged through bankruptcy. If you or someone you love is facing serious financial difficulties and is considering filing for bankruptcy, consult the Austin bankruptcy lawyers of Slater Kennon & Jameson, LLP at 512-338-1100.

Common Payment Resolution

Since student loans cannot be discharged under bankruptcy, some individuals opt to resolve their debts through:

• Student loan consolidation.
• Challenging the balance of the debt. Since loans may be transferred to different lenders over time, you may be able to challenge balance issues and fees or charges that may have been added to the loan.
• Using Chapter 13 bankruptcy to get a judge's ruling. A judge may set up a longer repayment plan or other financial decision that the lender must allow.
• Consolidating the student loan debt under Chapter 13 bankruptcy. This may allow the individual to propose a plan of repayment to his or her creditors.
• Individuals may work out a repayment plan directly with his or her lender to structure it to fit a longer repayment schedule or make graduated payments once the financial situation improves.
• Lenders may defer payment until the person's financial situation is more stable.

Contact Us

If you or someone you love is considering filing for bankruptcy, contact the Austin bankruptcy attorneys of Slater Kennon & Jameson, LLP at 512-338-1100 to discuss your financial options.