Menu Contact
866-504-5969
662-655-1012
View Our Practice Areas

Student loans could become easier to discharge

Generally speaking, those who have student loan debt in Mississippi and any other state are unlikely to have it discharged in bankruptcy. However, recent trends have seen bankruptcy judges reduce the amounts that debtors are asked to repay. Furthermore, lenders themselves have been increasingly open to the idea of settling student loan debt for less than the full balance owed. Judges may be more sympathetic to student loan debtors because they see the impact it has on their own children.

They may also see the impact it has on their law clerks or others close to them. Typically, student loan debt can only be discharged if a person can show that being forced to pay the debt would constitute an undue hardship. In 2017, only 473 people tried to use bankruptcy to obtain student loan relief according to the Wall Street Journal.

Overall, there are 45 million Americans with student loan debt, and the average law student graduates with a balance of $119,000. While the standard to get such debt canceled or reduced is a high one, some judges believe that it is too high. In 2017, an individual had $50,000 in student loans canceled because health issues made it difficult to find employment. Those who don't want to seek debt relief through bankruptcy may wish to contact their lender for other options.

Individuals who are facing financial challenges because of student loan or other types of debt may benefit from bankruptcy. It may be possible to have debts discharged or reorganized, which may make them easier to repay. An attorney may explain the benefits of bankruptcy such as a stay from foreclosure or repossession of assets. He or she may also help a person show that paying student loan debts could constitute an undue burden.

No Comments

Leave a comment
Comment Information

Don’t wait any longer.Request a free initial meeting now.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get driving directions to our office.

O'Brien Law Firm, LLC
1890 Goodman Road East
Southaven, MS 38671

Toll Free: 866-504-5969
Phone: 662-655-1012
Fax: 662-536-7292
Fax: 662-796-0239
Southaven Law Office Map