An increasing number of young people in the United States are now going to college. For the majority of college students, loans are taken out in order to pay for tuition and living expenses. At the time, college students take out these loans thinking that they will be able to make repayments effortlessly when they gain high paying jobs after graduation. However, the reality is usually not so simple.
Unfortunately, many graduates in the state of Maryland suffer financial hardships that are made more difficult by student loan repayment obligations. Student loan debt can be crippling, and they are one of the most common forms of debt in the United States. Therefore, those considering bankruptcy often wonder whether the student debt will be discharged during the filing.
Are student debts treated differently than other types of debt?
The rules on gaining a student loan debt discharge tend to be stricter in comparison to other types of debt, for example credit card debt and mortgages. There is no obvious reason for this, but some speculate that the stricter rules attempt to stop graduates from abusing the bankruptcy system.
Under what circumstances may I be able to successfully have my student loan debts discharged?
If your reason for filing for bankruptcy was not strongly related to overwhelming student loans, it may be difficult to provide a convincing case. In order to have your student debts discharged, you must be able to show that the student loan repayment obligations are creating an undue financial hardship for you.
This might mean that it has become impossible for you to maintain a basic lifestyle and keep repaying your student loans. Alternatively, you might be able to show that other repayment obligations during a certain period make it difficult for you to cope with the burden of student debts in the foreseeable future. You should also be able to show that you have made honest attempts to repay the loans, but that your circumstances prevent you from doing so.
If you are struggling with overwhelming student debts in Maryland, you may want to consider how a bankruptcy filing could help your situation.