Student Loan Debt | Your Chapter 7 Bankruptcy Options

If you are facing huge amounts of student loan debt, you may be able to file for Chapter 7 bankruptcy. To learn more, continue reading and reach out to a skilled Newburgh bankruptcy lawyer today.

Can I discharge my student loans through Chapter 7 bankruptcy?

If you are interested in discharging your student loans, will need to file an adversary proceeding. This proceeding will be seen in bankruptcy court, and the court will determine whether or not your loans are dischargeable or not. Additionally, you will need to show the court evidence that your loans will cause undue hardship.

It is not easy to establish undue hardship, which means that you will need a seasoned bankruptcy attorney on your side to help you navigate through this process. Do not hesitate to reach out to our firm today to begin.

How is undue hardship defined?

The state of New York defines undue hardship, as the idea that if you are encountering student loans that you just cannot pay off or would be paying off for your whole life. For example, if you are facing an obscene amount of student loan debt, but your job only pays you a certain amount of money, it can be almost unimaginable to consider paying your debt and making important purchases, such as food, water, clothing, or basic shelter. Unfortunately, this is a very challenging situation for a hard-working person to be faced with. Because of this, if you are able to prove undue hardship, you may be granted the relief you require. To prove undue hardship to the court, many courts use the Brunner test, titled after the Brunner v. New York Higher Education Services Corp. case. In order to use this test, in some cases, if you can show that you can no longer hold a minimal standard of living for you and your family, your current financial situation is set to continue for years to come, and you are doing your best to pay your student loans and to stay afloat, you may have your student debt cleared under the Brunner test.

You are not alone if you are facing this unfortunate situation. And, luckily, you have many options. Do not wait to reach out to our experienced New York bankruptcy firm today to discuss the specifics of your case and options with our dedicated legal team. Our firm is supplied with the knowledge and experience required to assure that you and your future are covered. Give us a call today.


Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.

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