Student loans can help relieve the financial burdens associated with a college education, but it’s important to keep in mind that they come with their own financial obstacles. Steep student loan payments can be so high and go on for so long that you may feel it’s impossible to escape them in any reasonable amount of time.
Our lawyers at Tom Bible Law understand how challenging it can be to recover from student loan debt. When you work with us, we’ll make it our obligation to help you through the bankruptcy process, so you can focus on achieving your financial goals.
To discuss your case with our student loan bankruptcy lawyers in Chattanooga, Tullahoma, or Kingsport, call (423) 690-7712.
The Cost of College and Student Loan Debt
Most people will tell you the value of a college education. Statistics show that, on average, it can significantly increase your earning potential (typically between 30-50%), lead to more career options, and contribute to steadier employment over the course of your career.
However, a college education is not priceless, and the reality of the situation is that college is extremely expensive. Since 1980, the price of college has gone up by more than 150%, and the growth rate of this increase is 19 times faster than that of the family median income in the U.S.
Many people turn to student loans to help them pay for college. Unfortunately, despite various programs designed to help people pay off these loans, student loan debt has led to a financial crisis in its own right. According to the Federal Reserve Bank of New York, together, student loan borrowers owed $1.57 trillion in student loan debt as of September 2022.
Discharging Student Loans Through Bankruptcy
Although resolving student loan debt through bankruptcy is possible, it’s so difficult that most bankruptcy lawyers won’t even accept cases focused on this type of debt.
There are many legal cases and extensive legislation that pertains to this matter. To simplify the discussion, the main obstacle preventing discharge is a very restrictive and broad requirement that you must definitively prove your student loans cause undue hardship for you and your family. This may sound easy enough, but most courts believe student loans don’t cause such hardships on their own, especially because there are resources for paying them off, namely income-based repayment plans.
We know repayment plans often don’t go far enough to efficiently resolve student loans. It is often still possible for these loans, like other ones, to be overwhelming and unmanageable financial burdens. Our office can help you assess your financial situation and determine which type of bankruptcy would be best for you—most often Chapter 7 or Chapter 13. We can also assist you with the necessary paperwork, including your petition and adversary proceeding, and represent your interests throughout the entire case.
To schedule a free consultation with our Chattanooga-based student loan bankruptcy attorneys, call (423) 690-7712 or message us today.