You might be aware of how filing for
Chapter 7 or
Chapter 13 bankruptcy can attempt to dispel all or some of your eligible debts to
creditors. Sometimes, this comes at the cost of your personal pieces of
property, such as homes, automobiles, or even heirlooms. But what is a
student, who might not have anything to their name beyond their education,
to do if their very own student loans are the source of their financial stress?
For the most part, student loans will not be automatically discharged through
bankruptcy – that is the bad news. The good news is that they are
not entirely ineligible; with a reliable bankruptcy attorney in your corner,
you might be able to eliminate your student loan debts if you can show
that you will experience “undue hardship” should you be forced
to continue repaying them. But now the question is: how can you prove
the existence of undue hardship?
What is the Brunner Test?
A bankruptcy court may use what is commonly referred to as a Brunner test
to determine if student loans are actually causing you to experience undue
hardship. This test breaks down into three aspects:
Poverty: You will fall below the poverty line, if you are not already under it,
if you continue to pay your student loan debt with your current income
Duration: You cannot foresee any improvement to your financial situation for quite
some time, or at all. Therefore, the hardship shall persist indefinitely.
Good faith: The most subjective of the three qualifiers, the court will determine if
you have actually made an honest effort or not to repay your student loans
before filing to have them discharged.
As numbers in a bank account or on a billing statement might not be enough
for you to “pass” the Brunner test, much of your future stability
may actually rely on the persuasiveness and effectiveness of a Springfield,
MO bankruptcy attorney. If you need trustworthy legal counsel for your
student loan bankruptcy case, do not delay in calling Worsham Law Firm at
417.658.4172 and request a
free initial consultation with one of our lawyers.