You may have accrued significant student loan debt, figuring it would be no problem to repay it once you began your career. Unfortunately, like many Florida residents, you encountered unforeseen financial troubles and you are having difficulty staying afloat, let alone paying down your student debt. You might be considering filing for bankruptcy, but you’ve heard that student loans are not eligible for a bankruptcy discharge.
It is true that bankruptcy won’t cover federal student loans, according to the U.S. Department of Education. In some instances, which you should understand are very rare, student loan debt might be forgiven. For example, a catastrophic injury or illness that has left you permanently unable to work might qualify you for student loan forgiveness. You may be required to show that you attempted to repay your loans in good faith. If you worked in a public service government position or as a teacher, you may also get help with your student loans. If you are experiencing a temporary financial hardship, you might be able to apply for a deferment of your payments.
The fact that federal student loans are extremely difficult to have forgiven should not deter you from filing for bankruptcy if this option would give you relief from insurmountable debt. It may make it easier to pay your student loans and other bills if you are able to discharge other debts, such as credit card and medical debt. This information, however, is not meant to replace the advice of a lawyer.