Can Student Loans Be Discharged In Bankruptcy In Pennsylvania?

Bankruptcy Attorneys Montgomery County PA

Montgomery County, PA residents facing financial hardships rarely struggle due to one specific type of debt. Financial strain is usually due to the 
combination of numerous types of debt and outside factors such as loss of job, loss of equity in your home, significant medical issues, etc. One very common type of debt that may add to your financial problems is student loan debt. If you are facing difficult times financially you should immediately speak to a Norristown Debt Discharge Lawyer regarding your options.

Student Loan Debts And Bankruptcy In Pennsylvania

Student loan debt is 
generally not dischargeable by filing for bankruptcy. That means that if you file for Chapter 7 bankruptcy to discharge other debts the student loans will survive the bankruptcy dischargeHowever, you may be able to deal with past due arrearages through a Chapter 13 bankruptcy. The arrears can be paid over time through the Chapter 13 repayment plan.

Student Loan Discharge Through Undue Hardship

One other option you may have is claiming undue hardship. An undue hardship may allow 
for the the student loan debt to be discharged. For instance, if you were severely injured and cannot work you may qualify for student loan discharge via undue hardship. You will have to prove why you cannot repay the debt, that your situation is long term and that you made efforts to repay the loans prior to filing for undue hardship. This is extremely difficult and will require the assistance of a skilled bankruptcy professional.