The bankruptcy laws have made it very difficult and discharging student loan debt through bankruptcy is only very rarely possible with non-Federal student loans.
A common source of debt for many Americans is student loans. It has recently been estimated that student loan debt in the United States has hit over 1 trillion dollars.
The Internal Revenue Code Section 221(d)(1) defines student loans as “any indebtedness incurred by the taxpayer solely to pay qualified higher education expenses (A) which are incurred on behalf of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred, (B) which are paid or incurred within a reasonable period of time before or after the indebtedness is incurred, and (C) which are attributable to education furnished during a period during which the recipient was an eligible student. Such term includes indebtedness used to refinance indebtedness which qualifies as a qualified student loan.”
The only way to discharge a private student loan is to show undue hardship. This is a very challenging requirement to prove and highly unlikely. To get the successful discharge of a student loan, an individual must file a Complaint to Determine Dischargeability of Student Loan and have the court rule in his or her favor. Courts generally rule against the claimant in these matters.
When facing the prospect of bankruptcy it is important to have the right legal counsel to guide you through your options. Winter Park, Florida, attorneys Eric Lanigan and Roddy Lanigan have experience helping clients with bankruptcy complexities and issues.
Contact Central Florida attorneys Eric Lanigan and Roddy Lanigan at their Winter Park office with any questions you have before filing bankruptcy. Call to meet with them today. You’ll receive professional advice that comes from years of experienced representation with a personal touch.