New Guidance from the Department of Education Makes it Easier to Discharge Student Loans in Bankruptcy
For years, student loan borrowers have been told that they could not discharge their loans in bankruptcy. This was a major barrier for many borrowers who were struggling to make their payments. However, the Department of Education recently issued new guidance that makes it easier for borrowers to discharge their loans in bankruptcy.
The new guidance also makes it easier for borrowers to qualify for bankruptcy discharge of their student loans. The new guidance lowers the bar for proving undue hardship, which is the standard that borrowers must meet in order to discharge their loans in bankruptcy. Under the new guidance, borrowers will be able to prove undue hardship if they can show that repaying their loans would cause them a significant financial hardship.
The new guidance from the Department of Education is a major victory for student loan borrowers. It makes it easier for borrowers to get out of debt and start fresh.
Here are some of the benefits of the new guidance:
- It makes it easier for borrowers to apply for bankruptcy discharge of their student loans.
- It lowers the bar for proving undue hardship.
- It is more streamlined and less burdensome than the previous process.
- It makes it easier for borrowers to get out of debt and start fresh.
If you are struggling to make your student loan payments, you should contact the bankruptcy attorney Jeff Butwinick at 651-210-5055 to see if you qualify for student loan discharge.
In my 20 years of bankruptcy practice, there has never been a better time to eliminate student loans in bankruptcy.
Want more info? Please contact me at your earliest convenience to schedule a free consultation to discuss the specifics of your case.
You can also self-schedule an appointment by going here:
I look forward to hearing from you.