Student Loan Debt And Chapter 7 Bankruptcy Hardship

While Chapter 7 bankruptcy will allow for relief from all forms of unsecured debt, private and federal student loans are deemed non-dischargeable without proof of hardship. Unfortunately, the standard for Chapter 7 student loan hardship relief is nearly impossible to satisfy. Chapter 7 relief for hardship is not a worthwhile avenue, despite recent extreme hardship cases.

Chapter 7 relief for all other forms of debt is helpful for student loan repayment but Chapter 7 does not discharge student loan debt.
However, Chapter 7 debt relief eliminates unimportant debt and allows for the proper allocation of income resources to more important student loan obligations. On its own, Chapter 7 should not be viewed as an avenue for the discharge of private or government student loan debt.

To learn about Chapter 7 debt relief and other options for student loan debt relief, call the experienced Connecticut Student Loan Debt and Chapter 7 attorneys at the Law Offices of Neil Crane at 203-230-2233 or toll free at 1-888-249-3027.

Chapter 7 Debt Discharge For Student Loan Relief

While Chapter 7 bankruptcy will not allow for the discharge of private or governmental student loans, it does provide general debt relief that can be used in combination with other avenues for overall student loan debt relief.

Since all forms of student loan debt relief won't make room for payments needed for other debt obligations, relief from these obligations can be critical to your success under any and all student loan debt repayment programs; including:

  1. Student Loan Consolidation
  2. Income Based Repayment
  3. Chapter 13 Bankruptcy Plans

Income Based Repayment Plans

The recent strengthening of Income Based Repayment or IBR has made this program a viable option for dealing with overwhelming student loan debt. While the Income Based Repayment program is a step in the right direction, there are a number of important limitations that may reduce the relief granted; namely:

  • Loan dates, rates and qualifications
  • Gross income parameters
  • Seasonal income adjustments

To learn more about student loan debt options, call the Connecticut student loan relief attorneys at the Law Offices of Neil Crane. We can be reached at 203-230-2233 or toll free at 1-888-249-3027 to schedule your free consultation.