Salt Lake City Bankruptcy Attorneys
Student Loans – Non-Dischargeable Debts in Utah Bankruptcies
In general, student loans are considered non-dischargeable debts in Utah bankruptcy cases. However, we recommend that you consult an attorney about your specific situation as there may be exceptions to the rule. One possible option is to show “substantial hardship”. Through a hardship hearing, it is possible that your student loan may be discharged or modified. A hardship hearing is a legal action during which you or your attorney will need to prove that repayment of your student loan or loans will create a substantial hardship upon you and your family. Generally interpreted, a “substantial hardship” would mean that repaying the loan would cause you to be unable to maintain a minimally adequate standard of living. Your attorney would also need to prove that your situation is unlikely to improve dramatically (therefore making you able to pay your student loan in the future).
A Salt Lake City bankruptcy lawyer at the Stone Law Firm can help you if you have student loans and are considering bankruptcy. We have the knowledge to evaluate your particular situation and determine if there is a way to discharge or modify your student loan and therefore help you find relief from these often overwhelming payments. Our skilled lawyers represent clients throughout all of Salt Lake City, Provo and Ogden, Utah.
Discharge Your Student Loan in Your Salt Lake City Bankruptcy Case
In addition to exploring the option involving a hardship hearing, there are other possibilities a lawyer at our firm can look at:
- It may be possible to pay off a portion of the loan and then to discharge the balance.
- Because student loans are legally binding contracts just like any type of loan, a lawyer may be able to challenge the loan itself on the basis of fraud or a similar situation.
- If the school closed prior to you completing your education, your student loan should not be enforceable.
- Your lawyer may be able to challenge your student loan regarding whether you owe it at all. The creditor will need to prove that you owe the money. If the creditor is unable to do this, your loan may be discharged.
Contact a Salt Lake City bankruptcy attorney for more information regarding whether you may be able to discharge your student loan in conjunction with your Chapter 7 or Chapter 13 bankruptcy.