Student loans can be hard to deal with but how does one measure the difficulty of living with student loan debt in legal terms? You know how difficult it is for you; cutting back on expenses, trying to budget properly, skipping out on events and outings with friends, missing payments on your mortgage and credit cards, and feeling completely helpless. Bankruptcy can be the first step to getting rid of all of those feelings and starting from scratch.
Whether you intend on filing for Chapter 7 bankruptcy or Chapter 13, you will have to prove that your student loans are causing you ‘undue hardship’ by taking the Brunner Test – a test designed to gauge how much your student loans are affected you. A bankruptcy lawyer in Phoenix can help walk you through the process of bankruptcy and detail what undue hardship may mean in bankruptcy court.
Why Do I Have to Prove Undue Hardship?
You thought your days of taking assessments were over after college but now you have to face the prospects of taking the Brunner Test to prove the undue hardship your student loans are causing you. Why is this hardship something you have to prove? For starters, if undue hardship didn’t need to be proved for bankruptcy cases involving student loans, it’s possible many more people would opt for some form of bankruptcy to get rid of the large student loan debt affecting them.
A lot of people can afford student loans so having to prove undue hardship can weed out those who would just take advantage and allow the process to focus on those who really need it. If a court finds your student loans affect the day-to-day aspects of your life, they may rule in your favor to have your student loans discharged. A bankruptcy attorney can analyze your income to debt ratio and see what your prospects are for getting your student loans discharged.
What are the Ways to Prove Undue Hardship?
The primary way to prove undue hardship is through the Brunner Test. The test analyzes different aspects of your debt, your income, and any other hardship factors such as being on public assistance. Other ways to prove hardship involve how many dependents you are responsible for, if any of them are in critical health and if you have any mental health issues or physical disabilities. Talking with an attorney can help factor all of your hardships to determine if getting your loans discharged is a real possibility.
How Can a Lawyer Help Me Prove Undue Hardship in My Bankruptcy?
Bankruptcy can be a valuable tool when you are struggling with student debt. While the process of proving your hardship and getting your student loan debt discharged can seem overwhelming, with the proper guidance, it can be a walk in the park. Israel & Gerity, PLLC provides clients with excellent legal advice no matter what their situation is. Contact Israel & Gerity, PLLC at 602-274-4400 for a free bankruptcy case consultation.