If you are having difficulty repaying your student loans, you are not alone. Student loan debt is one of the most serious financial problems affecting young workers. While student loans are generally not dischargeable when filing bankruptcy, there are exceptions. Even if you cannot discharge the loan, bankruptcy may still provide you with debt relief.

Before you assume that bankruptcy is not a solution for student loan debt, discuss your financial situation with an experienced bankruptcy attorney.

Here are some ways bankruptcy can help people with student loan debt:

  • In cases of extreme financial hardship such as disability, student loan debt can be discharged by filing Chapter 7 bankruptcy. A bankruptcy attorney can evaluate your situation and determine if you may be eligible.
  • If student loan debt cannot be discharged, you may be able to get rid of other types of debt such as credit card bills, hospital bills and payday loans. By discharging other types of debts, you may find that you are able to afford payments on your student loans.
  • If you are behind in your student loan payments, you can have your arrearages placed in a Chapter 13 payment plan. This can help you avoid interest and penalties while paying off your arrearages over time. It will also stop harassing phone calls from creditors.

While bankruptcy does not discharge all types of debt, it may provide enough relief to help you keep your head above water. The Reed Law Firm in Columbia, South Carolina, files Chapter 7 and Chapter 13 bankruptcy for individuals in South Carolina who have more debt than they can pay.