Los Angeles Student Loan Bankruptcy Lawyer

Are You Struggling to Pay Off Your Student Loans?

After working hard to improve your education, it can be frustrating to deal with massive student loan debt. Recent graduates often struggle to make ends meet, let alone pay down their loans. If your student loan debt is causing unmanageable financial hardship, it is time to talk with a Los Angeles student loan debt attorney.

Call our firm at (213) 344-0043 to schedule a 30-minute risk-free consultation.

Can You Discharge Student Loans in Bankruptcy?

Student loans are not dischargeable in bankruptcy if they are partly funded by or guaranteed by a government entity or a nonprofit institution. This includes any student loan that carries payments that can be deducted from income taxes under the IRS Code.

Under some circumstances student loan debt may be discharged if it is proven that they impose an undue hardship on the debtor and any dependents of the debtor. Unfortunately, the process required to demonstrate this undue hardship can be extremely difficult for most debtors because it requires filing a lawsuit against the creditor. In this lawsuit the debtor has the burden of proof. Such suits can be complicated, time consuming, and often require the potentially expensive assistance of legal counsel.

How Do You Qualify for Undue Hardship?

Court decisions that rule the debtor is experiencing an undue hardship have been extremely rare. Typically these rulings have only been for individuals suffering from some type of severe permanent and total disability that drastically restricts the ability of the debtor to earn more than a subsistence level of income.

To qualify for undue hardship, the debtor must prove each of the following three elements:

1. Using current income and expenses, the debtor cannot maintain a “minimal” standard of living him/herself and dependents if required to repay the student loans; and
2. Additional circumstances exist that shows this situation is likely to persist for a significant portion of the repayment period of the student loans; and
3. The debtor has made good faith efforts to repay the student loans.

How Can Filing for Bankruptcy Help with Student Loan Debt?

While you will most likely not be able to eliminate your student loan debt, there are ways to get the debt under control. By filing either Chapter 7 or Chapter 13 bankruptcy, you can free up funds, making it easier to pay your student loans.

Here's how bankruptcy can benefit you:

• By filing Chapter 7 bankruptcy, our lawyers can help you discharge your unsecured debts, such as credit card bills and medical expenses. Because you will no longer need to pay those debts, money is freed up to focus on your student loan.
• By filing Chapter 13 bankruptcy, it is possible to reduce the amount of your monthly payment to something more workable without the threat of penalty. Your student loan could also be deferred for a period of time.

At RHM LAW LLP, our lawyers know the bankruptcy laws from the inside out and will explore every option available to get the relief you need.

Helping Students with Debt in Southern California

At RHM LAW LLP, we understand how challenging financial distress can be. Our goal is to find a solution that will effectively relieve your debt burden and put you in a position to rebuild your financial health on more solid ground. We welcome the opportunity to explain the process and answer any questions you have. For your convenience, we offer payment plans.

To schedule your 30-minute risk-free consultation with an experienced student loan debt lawyer in Los Angeles, contact us today.