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Is Student Loan Bankruptcy An Option

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					Title: Is Student Loan Bankruptcy An Option

Source: http://financeequityloans.com

Category: student loans

Article body:
There are a wide variety of reasons why you could be considering student
loan bankruptcy as a solution to your student loan debts. Even though
this should be your last resort to paying off your student loans, you
might find yourself in a situation that could require you to file for
student loan bankruptcy.
Can You Declare Bankruptcy For Student Loans?

You can, but there are certain laws, rules and policies that you must
follow. There are also certain qualifications that you must be able to
prove in order to even qualify for a student loan bankruptcy. As far as
qualifying to declare bankruptcy, this could be different for almost
everyone.
Undue Hardship: You must be able to show that you have an undue hardship
in order to qualify for this type of bankruptcy. The only way you can
prove an undue hardship to declare bankruptcy for your student loans is
if you are physically unable to work and you will not be able to work for
the rest of your life. This is a rare occurrence, and difficult to prove
to a court. You should choose this method of applying for bankruptcy if
you meet the qualifications for it.
Chapter 13 Bankruptcy: You shouldn't expect to be able to get rid of all
of your student loan debts by filing under a chapter 13 bankruptcy, but
you could get rid of some or most of it. The best way to apply for this
one will be to expect to have your student loan debt consolidated,
because that is likely what the court will do (as well as eliminate some
of it). To qualify for chapter 13 you will need to prove that you have
the disposable income available to pay back at least most of your student
loan debt.
Are There Any Alternatives To Bankruptcy?

There are many alternatives available to you instead of filing for
bankruptcy. Here is an outline of those alternatives:
Repayment Plan: Work out a payment plan with your current lender that
will help lower your monthly payments now and increase as your income
does. Your lender wants to work with you and would be happy to help you
find a repayment plan that will work for both of you.
Payment Deferment: Contact your lender to ask for an application to apply
for payment deferment. If you qualify this will put off any payments you
would otherwise have to make and keep you out of collections until you
are able to make the monthly payments.
Student Loan Consolidation: Work with another lender to get all of your
student loans put into one loan with one monthly payment to make. This
will decrease your monthly payments and your interest rate, saving you
money now and later.
As mentioned before, applying for student loan bankruptcy should be
considered as a last resort if you can't simply find anything else that
will work for you and your financial situation. There are many
alternatives to filing for bankruptcy and your lenders can help you with
this as they do want you to pay back the loan even if they have to make
some adjustments.

				
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