| There are a wide variety of reasons why you could | | | | of your student loan debt. |
| be considering student loan bankruptcy as a solution to | | | | Are There Any Alternatives To Bankruptcy? |
| your student loan debts. Even though this should be | | | | There are many alternatives available to you instead |
| your last resort to paying off your student loans, you | | | | of filing for bankruptcy. Here is an outline of those |
| might find yourself in a situation that could require you | | | | alternatives: |
| to file for student loan bankruptcy. | | | | Repayment Plan: Work out a payment plan with your |
| Can You Declare Bankruptcy For Student Loans? | | | | current lender that will help lower your monthly |
| You can, but there are certain laws, rules and policies | | | | payments now and increase as your income does. |
| that you must follow. There are also certain | | | | Your lender wants to work with you and would be |
| qualifications that you must be able to prove in order | | | | happy to help you find a repayment plan that will work |
| to even qualify for a student loan bankruptcy. As far | | | | for both of you. |
| as qualifying to declare bankruptcy, this could be | | | | Payment Deferment: Contact your lender to ask for |
| different for almost everyone. | | | | an application to apply for payment deferment. If you |
| Undue Hardship: You must be able to show that you | | | | qualify this will put off any payments you would |
| have an undue hardship in order to qualify for this type | | | | otherwise have to make and keep you out of |
| of bankruptcy. The only way you can prove an undue | | | | collections until you are able to make the monthly |
| hardship to declare bankruptcy for your student loans | | | | payments. |
| is if you are physically unable to work and you will not | | | | Student Loan Consolidation: Work with another lender |
| be able to work for the rest of your life. This is a rare | | | | to get all of your student loans put into one loan with |
| occurrence, and difficult to prove to a court. You | | | | one monthly payment to make. This will decrease your |
| should choose this method of applying for bankruptcy | | | | monthly payments and your interest rate, saving you |
| if you meet the qualifications for it. | | | | money now and later. |
| Chapter 13 Bankruptcy: You shouldn't expect to be | | | | As mentioned before, applying for student loan |
| able to get rid of all of your student loan debts by filing | | | | bankruptcy should be considered as a last resort if |
| under a chapter 13 bankruptcy, but you could get rid of | | | | you can't simply find anything else that will work for |
| some or most of it. The best way to apply for this one | | | | you and your financial situation. There are many |
| will be to expect to have your student loan debt | | | | alternatives to filing for bankruptcy and your lenders |
| consolidated, because that is likely what the court will | | | | can help you with this as they do want you to pay |
| do (as well as eliminate some of it). To qualify for | | | | back the loan even if they have to make some |
| chapter 13 you will need to prove that you have the | | | | adjustments. |
| disposable income available to pay back at least most | | | | |