You likely never thought you’d be in such a financial rough spot when you graduated did you? Well, since a college education is so expensive, millions of people take out student loans to make it through their four or more years in higher learning. Many of these people then fall on hard times and cannot repay the loans. They opt for bankruptcy in the hopes that it will help them with their student loan debt in New Hampshire.
In order to have your student loan debt expunged during bankruptcy, you will be required to prove that you are suffering from some sort of undue hardship. You will need to explain the situation to the bankruptcy judge and he or she will make a ruling based on what they hear regarding your situation.
The requirements for undue hardship are as follows:
- The debtor can no longer maintain a minimum standard of living because of income and expenses if he or she is forced to repay student loans.
- There are added circumstances present that show that the undue hardship will continue in the future.
- The debtor can show, using documentation, that he or she has made every effort to make payments on the student loans.
It’s best that you file for bankruptcy to put a stop on all debt collection efforts while you try to prove undue hardship. This gives you time to build your case. If the judge approves the undue hardship, then your student loan debt will be wiped out completely.
Are you planning to file bankruptcy in an effort to get rid of student loan debt? You need to ask questions and find out whether or not your story is one of undue hardship that the judge will allow.
Source: Student Loan Borrower Assistance, “Bankruptcy,” accessed March 15, 2018