Most college graduates believe that discharging their student loans through bankruptcy is impossible. While it is a challenge and many loans cannot be erased, the problem is not inherently insurmountable.
At North & Sedgwick Law, students and other individuals find comprehensive and knowledgeable guidance through the Illinois bankruptcy process. Student loan debt relief lawyer Paul Camarena has a decade of experience in federal court.
Bankruptcy Courts Have Discharged Such Debts 40 Percent Of The Time
According to a study conducted by Jason Iuliano (J.D., Harvard Law School; Ph.D. student in politics, Princeton University), the idea that the courts never discharge student debt is a myth. In fact, they have discharged student loans 40 percent of the time when asked. While it is true that the majority of such debts are not discharged, a four out of 10 success rate means you still have a very significant chance.
Sadly, few individuals even try to obtain relief from their student loan debts. Mr. Iuliano found that over the course of only one year, approximately 69,000 debtors would have been good candidates to seek a discharge. However, 99.9 percent failed to pursue the possibility.
What Does It Take To Get A Student Loan Discharged?
In essence, a debtor must be able to prove three things to be considered eligible for a student loan discharge:
- He or she must be currently unable to repay the debt.
- He or she must show that it is impossible to repay the debt in the future.
- He or she must have made a good-faith attempt to repay the debt.
Call A Bankruptcy Lawyer Serving Berwyn, Cicero And Beyond
Schedule a free initial consultation with an attorney by calling North & Sedgwick Law at 312-878-8429. You can also contact the firm via email.
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†The firm is a debt relief agency and helps people file for bankruptcy relief under the Bankruptcy Code.