Many individuals facing student loan debt may feel as if they will be stuck with it for the rest of their lives. It is not unusual for this type of debt to consist of hundreds of thousands of dollars, and some Tennessee residents may begin to wonder whether the education was worth the cost. However, rather than thinking in such a manner, parties may wish to look into potentially discharging the debt through Chapter 7 bankruptcy.
It is commonly heard that student loan debt cannot be discharged through bankruptcy. As a result, many individuals with overwhelming debt may not even try to have their debt forgiven. It was recently reported that less than 1 percent of individuals attempted to have their student loans discharged in 2007, but of those who did, nearly 40 percent saw at least some relief.
If individuals would like to go through this process, one avenue would see them needing to prove that their loan payments are causing undue hardship on their ability to meet the minimal standard of living. However, "undue hardship" has not been specifically defined, and therefore, individuals may have some slack when it comes to arguing their cases. Of course, there are other factors that could play a role, and each case has its own circumstances.
If Tennessee residents are interested in potentially discharging some of their student loan debt, they may wish to find out more information on Chapter 7 bankruptcy. This information could be obtained from local reliable resources. Additionally, discussing specific aspects of individual cases with experienced attorneys could help parties better understand how they may be affected.
Source: nerdwallet.com, "How to Get Your Student Loans Discharged in Bankruptcy", Devin Delfino, June 30, 2016