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Before you make the decision to file for bankruptcy with the help of a lawyer, it’s essential to carefully review your finances. A bankruptcy attorney will evaluate your liabilities to determine which debts may be eligible for discharge during bankruptcy. Unfortunately, in many cases, student loans do not qualify for a bankruptcy discharge. However, certain exceptions do apply.

For example, you may have taken out private student loans from a bank, credit union, or similar type of lender. Just like credit card debt, these loans may be dischargeable through bankruptcy.

Even if you have federal student loans, there is a possibility that you can have them discharged. Your bankruptcy attorney will need to prove that your student loan obligations cause you undue hardship. Bankruptcy courts use the Brunner test to consider whether a hardship exception is called for. This test involves three criteria: Whether paying the loan creates an inability of the borrower to maintain a minimum standard of living; whether the borrower’s financial situation is likely to change in the future; and whether the borrower has demonstrated a good faith effort to pay the loans.

If you are considering filing for bankruptcy, you can receive personalized guidance from the bankruptcy attorneys at Cutler & Associates, Ltd.