Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”
The Obama Administration unveiled on Tuesday what it dubbed a “Student Aid Bill of Rights.” Among the proposals the administration is considering is a push for legislation that could enable borrowers to discharge student-loan debt through personal bankruptcy.
According to the Wall Street Journal, at least 713 people tried to discharge their student-loan debt last year. The Journal knows that because in order to discharge student-loan debt, a debtor has to file a lawsuit. Lawyers taking on a student-loan discharge attempts “typically charge several thousands [of] dollars” up front for an uncertain result, according to the Journal.
In order to succeed at getting student-loan debt discharged, a lawyer must convince a judge that the debtor will never be able to afford one’s monthly payments. Bankruptcy lawyers told the Journal that bankruptcy judges have issued a wide range of rulings in student-loan debt discharge actions, muddying the legal landscape with uncertainty.