An important factor that sets student loan debt apart from all other kinds of debt is that it’s just about impossible to rid yourself of it. Even borrowers that end up in such financial burdens file for bankruptcy and struggle to get a fresh start void of their student loan debt.
But a few cases working their way through the legal system could alter that. They increase the possibility that the courts might offer a loose definition of how difficult the borrower’s financial situation is before a bankruptcy judge can justify discharging his or her loans.
A San Diego Bankruptcy Lawyer whoconcentrates his entire practice in Bankruptcy Law and can help you determine if filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy is right for you. If you've already filed for bankruptcy in the past, a Chapter 20 combination or debt settlement program just might be right for you.
Bankruptcy is a federal legal status of a person in debt or other entity that is not able to repay the debts it owes to their creditors. In many jurisdictions, bankruptcy is imposed by an order of the court, often initiated by the debtor.
Bankruptcy, however, is not the only legal status that a person in debt or other entity may have, and when we say bankruptcy, it isn't synonym for insolvency. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings.