Finding ways to handle student loan debt is often on the minds of many college graduates. They may graduate with a sense of hope for financial freedom only to be tied down to years of payments that cause considerable difficulties on their lives. If South Carolina residents are facing such a predicament pertaining to their student loans, they may wish to determine whether bankruptcy could help.
Though many individuals may have heard that student loans cannot be forgiven under bankruptcy, that may not always be the case. It was recently reported that few people actually attempt to have their student loans discharged through bankruptcy. For those who do try, nearly 40 percent saw at least some of their debt reduced.
If individuals are able to prove undue hardship, or that their loan payments are causing unnecessary financial difficulty, they may be able to utilize Chapter 7 bankruptcy. When proving undue hardship, individuals will need to present evidence that the loans cause an inability to maintain a minimal standard of living. If undue hardship cannot be proved, parties may still be able to use a Chapter 13 repayment plan to work on their payments.
No one should feel burdened by the cost of his or her education for the rest of his or her life. Therefore, South Carolina residents who are feeling overwhelmed by their student debt may wish to determine whether certain debt relief options could prove beneficial. If interested, discussing their particular cases with experienced attorneys could help them work toward overcoming their debt issues and moving toward a brighter financial future.
Source: nerdwallet.com, “How to Get Your Student Loans Discharged in Bankruptcy”, Devin Delfino, June 30, 2016