Matthew T. Berry Bankruptcy Law Blog on Lawyers.com

Bankruptcy in Atlanta

Can I discharge my student loans by filing bankruptcy in Atlanta?

This question is asked very frequently by our clients.  And like many legal questions, the answer is that it depends.

Generally, student loans are not dischargeable in a bankruptcy proceeding, meaning the debtor (borrower) must repay the loan.  However, the law provides an exception to this general rule in a section of the bankruptcy code referred to as the "undue hardship provision."

A test commonly used by the courts states that a student loan is dischargeable if all 3 of the following conditions are met...

1.  The debtor cannot maintain, based on current income and expenses, a ''minimal'' standard of living if forced to repay the loans.
 
2.  There are indications that the state of affairs is likely to persist for a significant portion of the repayment period.

3.  The debtor made good faith efforts to repay the loans.

Of course, there a number of factors that must be presented to the court in each part of the above test.  And doing so effectively can make a huge difference in the outcome of a bankruptcy client's case.

The lawyers at Berry & Associates have excellent experience in student loan dischargeability.  For more information visit...

Berry & Associates - atlanta bankruptcy attorneys
2751 Buford Hwy, Atlanta, GA 30324
Phone : 1-877-715-0306
www.georgiabankruptcyfiling.com