Is it Possible to Discharge Student Loans in North Dakota during Bankruptcy?

Filing bankruptcy can help you waive your debts and reduce your liability. But authorities cannot waive off some loans. Getting a waiver on your student loan is an uphill task, but it is not impossible. In this post, we will explore some options in your favor to waive your student loan in North Dakota.

Filing bankruptcy on student loan

All loans and debt must be notified and listed while filing for hardship. Student debt loans are also on the list. You can file for bankruptcy in chapters seven and chapter 13. If you only have a student loan as your debt, it is tricky to get away with it. The type of loan also has a significant impact on your loan discharge. If you have a private student loan, it is relatively easier to get discharged than federal student debt.

Chapter 13 is applicable when an individual fails to pass chapter 7. A lawyer can better explain the intricacies of both chapters. But remember, there is something more you need to file other than these chapters.

Filing Adversary proceedings

An adversary proceeding is essential to file for getting your loan discharged. It is crucial in student debt because some liabilities have stern requirements for discharging. Adversary proceedings should include details like a bankruptcy case number, the reason for discharging your student loan, and many more.

Undue Hardship to discharge student loan

Under bankruptcy law, it is relatively harder to waive your student loan than any other funding. You should substantiate that the student loan payment was taken due to undue hardship. The Brunner test determines undue hardship. You should prove the following if you want to pass the Brunner test and prove undue hardship.

  • You have put all your effort to the pay the debt and ameliorating your financial condition
  • Your present condition is not likely to improve any time soon. Hence, you cannot pay the loan.
  • If you repay the loan, you cannot afford a minimal living standard.

Why do you need a lawyer?

As you must have understood, discharging your student loan is difficult. So, it is preferred to hire an attorney for your case. An attorney has experience in managing cases like these and uses their expertise and experience to get the best result in your favor. 

The cost might be a reason behind your reluctance to hire an attorney. In this case, some lawyers offer a free initial consultation. So, you can seek advice from them at zero cost. 

The court may feel your condition is not exceptionally dire if you hire a lawyer. So, make sure you choose a lawyer who does the job for free at first, if possible. 

End Verdict Discharging your student loan can give you mental and financial relief. So, it is crucial to leave no stone unturned to get the verdict in your favor. So, hire a lawyer from Autrey Law Firm before it is late and let them handle the further proceedings.