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How do I Discharge Student Loans with a St. Louis Bankruptcy Lawyer?

One of the biggest debt problems in our country involves student loans. Recently, the total amount of student loans passed $1 trillion. While the economy is improving, the unemployment rate is still extremely high for young people. This has caused many recent college graduates to ask a St. Louis Bankruptcy Lawyer about discharging these loans in bankruptcy. For most people, this is not possible. There are, however, certain people who can satisfy the strict requirements of discharging student loans in bankruptcy.

In order to discharge student loans in Chapter 7 bankruptcy, a person will need to prove three things. Under the “Brunner Test,” this means:

  • The student loans are causing poverty for a filer and/or their dependents
  • This situation is unlikely to improve
  • The filer has made a good faith effort to repay the student loans

The biggest issue for filers is that, by having a college degree, a filer’s situation is likely to improve in the future. Since college graduates earn more over their lifetime, simply having a college degree makes satisfying that second requirement almost impossible.

Even if a person can’t discharge their student loans in Chapter 7, it is possible to reduce payments under Chapter 13. A St. Louis Bankruptcy Attorney can help you get your monthly payments under control while you look to start your career. This way, you can get on your feet without getting crushed by monthly payments,

At Westbrook Law Group, we can examine your student loan situation to determine the best option for your debt issues. If you satisfy the Brunner Test, we will work to get your debt discharged in Chapter 7. If not, we can file Chapter 13 to help you reorganize and manage your debt. To speak with a St. Louis Bankruptcy Attorney about your debt problems, contact Westbrook Law Group today.