Bankruptcy may help with Tennessee student loans

Bankruptcy may help with Tennessee student loans

| Jan 1, 2016 | Debt Management, Firm News

Many individuals may face considerable debt issues after continuing their education. Because college and university expenses can lead to individuals needing to take out loans, paying back those loans can cause substantial issues. However, individuals who are looking to discharge such debt may be able to through filing for bankruptcy and proving undue hardship.

Tennessee residents may be interested in a case in another state in which a student was able to discharge student loans due to the circumstances of her case. Reports indicated that the woman had suffered from mental health issues that affected her ability to maintain a job, which, in turn, affected her financial state. Even while employed, the woman had to take multiple medical leaves of absence due to depression.

Due to her financial state, she filed for Chapter 7 bankruptcy. She also filed a complaint to determine whether her student loans would be able to be discharged. Several months after her initial filing, it was ruled that her loan debt would be covered under her bankruptcy because if it was not, it would cause the debtor undue hardship. As a result, her student loans were discharged.

Though continuing education can be a rewarding experience for many people, it can also cause considerable financial difficulties. If Tennessee residents are concerned over their student loan debt and other debt problems, they may be able to find bankruptcy useful to their situation. Information on the various bankruptcy proceedings and how they may suit a person’s case could help interested parties determine how to move forward.

Source: The Huffington Post, “Another Consumer Wins in Bankruptcy Court and Discharges Student Loans“, Steve Rhode, Dec. 29, 2015