{"id":37829,"date":"2024-01-17T04:03:55","date_gmt":"2024-01-17T12:03:55","guid":{"rendered":"https:\/\/pdxlegal.com\/?p=37829"},"modified":"2024-02-27T21:42:28","modified_gmt":"2024-02-28T05:42:28","slug":"should-i-file-bankruptcy-for-student-loans","status":"publish","type":"post","link":"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/","title":{"rendered":"Student Loan Bankruptcy in Portland, OR"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Can_Bankruptcy_Get_Rid_of_My_Student_Loans\"><\/span><b>Can Bankruptcy Get Rid of My Student Loans?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662c528798b28\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662c528798b28\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/#Can_Bankruptcy_Get_Rid_of_My_Student_Loans\" title=\"Can Bankruptcy Get Rid of My Student Loans?\u00a0\">Can Bankruptcy Get Rid of My Student Loans?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/#Quick_Summary\" title=\"Quick Summary:\">Quick Summary:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/#Can_I_File_Bankruptcy_On_Student_Loans\" title=\"Can I File Bankruptcy On Student Loans?\">Can I File Bankruptcy On Student Loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/#How_Can_My_Student_Loans_Be_Discharged\" title=\"How Can My Student Loans Be Discharged?\">How Can My Student Loans Be Discharged?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/#What_Happens_If_My_Student_Loans_Are_Not_Discharged\" title=\"What Happens If My Student Loans Are Not Discharged?\">What Happens If My Student Loans Are Not Discharged?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pdxlegal.com\/should-i-file-bankruptcy-for-student-loans\/#Work_With_Our_Bankruptcy_Lawyers_Today\" title=\"Work With Our Bankruptcy Lawyers Today!\">Work With Our Bankruptcy Lawyers Today!<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Understanding the complex terrain of student loan bankruptcy is crucial for those grappling with overwhelming <\/span><a href=\"https:\/\/pdxlegal.com\/student-loan-debt\/\"><span style=\"font-weight: 400;\">student debt<\/span><\/a><span style=\"font-weight: 400;\">. Contrary to common belief, discharging student loans through bankruptcy is not straightforward. It requires a meticulous approach, and having more knowledge can make all the difference.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quick_Summary\"><\/span><b>Quick Summary:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Student loans, which can be a financial burden, require careful management during bankruptcy to debunk misconceptions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Filing for bankruptcy on student loans is complex and hindered by strict legal standards, with the main challenge being proof of undue hardship.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To discharge student loans, there are available avenues like bankruptcy, Public Service Loan Forgiveness, and Total and Permanent Disability Discharge, offering relief under specific conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-discharged student loans result in consequences, including interest accrual and collection activities, emphasizing timely communication with loan servicers.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Many individuals face financial turmoil, burdened by the weight of student loans. <\/span><a href=\"https:\/\/pdxlegal.com\/when-should-you-declare-bankruptcy\/\"><span style=\"font-weight: 400;\">Declaring bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> may seem like a viable solution, but the reality is more complex.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_I_File_Bankruptcy_On_Student_Loans\"><\/span><b>Can I File Bankruptcy On Student Loans?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\"><span style=\"font-weight: 400;\">Filing for bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> on student loans is a complex and challenging process. In the United States, discharging student loans through bankruptcy is generally difficult due to specific legal standards that must be met.<\/span><\/p>\n<p><b>The primary obstacle is the undue hardship requirement<\/b><span style=\"font-weight: 400;\">, which necessitates proving that continuing to repay the loans would cause undue hardship for you and your dependents.<\/span><\/p>\n<p><b>How Can I Manage My Student Loans in Bankruptcy?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Managing student loans in bankruptcy involves understanding the options available and navigating the legal complexities of the process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While discharging student loans is challenging, there are strategies within bankruptcy that can help make payments more manageable. Here are key steps and considerations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine Eligibility:<\/b> <span style=\"font-weight: 400;\">Understand that student loans are generally considered non-dischargeable in bankruptcy, meaning they cannot be entirely eliminated. However, exploring alternatives and restructuring may be possible.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Choose the Right Bankruptcy Chapter:<\/b> <span style=\"font-weight: 400;\">Consider filing for either Chapter 7 or Chapter 13 bankruptcy, depending on your financial situation and goals.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Chapter 7:<\/b><span style=\"font-weight: 400;\"> While student loans are typically non-dischargeable, Chapter 7 can eliminate other unsecured debts, potentially freeing up funds to allocate towards student loan payments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Chapter 13:<\/b><span style=\"font-weight: 400;\"> Involves a structured repayment plan over three to five years, allowing for more manageable payments on all debts, including student loans.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Prove Undue Hardship: <\/b><span style=\"font-weight: 400;\">While rare, it is possible to discharge student loans by proving undue hardship. That involves demonstrating a persistent inability to maintain a minimal standard of living while repaying the loans.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_Can_My_Student_Loans_Be_Discharged\"><\/span><b>How Can My Student Loans Be Discharged?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Remember that<\/span><b> student loans are generally not easily dischargeable through bankruptcy<\/b><span style=\"font-weight: 400;\">. However, there are specific circumstances under which student loans may be discharged. Here are some potential avenues and how to qualify for them:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Undue Hardship:<\/b><span style=\"font-weight: 400;\"> As mentioned earlier, discharging student loans through bankruptcy is challenging but not impossible. You must prove undue hardship through the Brunner test or another applicable standard in your jurisdiction.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Brunner test evaluates three key components:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The borrower&#8217;s inability to maintain a minimal standard of living.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The likelihood is that this financial hardship will persist for a significant portion of the repayment period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The borrower&#8217;s good faith effort to repay the loans.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Meeting these criteria is critical for establishing eligibility for student loan discharge in bankruptcy proceedings.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Public Service Loan Forgiveness (PSLF):<\/b><span style=\"font-weight: 400;\"> If you work in a qualifying public service job and make 120 qualifying monthly payments under a qualifying repayment plan, you may be eligible for loan forgiveness under PSLF.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Teacher Loan Forgiveness:<\/b><span style=\"font-weight: 400;\"> Teachers who work in low-income schools may be eligible for loan forgiveness through the Teacher Loan Forgiveness Program. This program forgives a portion of the borrower&#8217;s federal student loans. To qualify, teachers must fulfill specific criteria, teaching full-time for five consecutive years in a qualifying school and meeting other specified requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Income-Driven Repayment (IDR) Forgiveness:<\/b><span style=\"font-weight: 400;\"> Depending on the plan, borrowers on income-driven repayment plans may be eligible for forgiveness after 20 or 25 years of qualifying payments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total and Permanent Disability (TPD) Discharge:<\/b><span style=\"font-weight: 400;\"> If you become totally and permanently disabled, you may be eligible for a discharge of your federal student loans through the Total and Permanent Disability (TPD) discharge program. To qualify, you must submit documentation of your disability status through the Social Security Administration, the Department of Veterans Affairs, or a physician, with specific processes outlined for federal loans.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Closed School Discharge:<\/b><span style=\"font-weight: 400;\"> If your school closes while enrolled or soon after you withdraw, you may be eligible for a discharge of your federal student loans. You must have been unable to complete their program due to the school&#8217;s closure to meet the criteria, and eligibility for federal loan discharge may vary depending on the loan type.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>False Certification Discharge:<\/b><span style=\"font-weight: 400;\"> If your school falsely certified your eligibility to receive the loan, you may be eligible for a discharge based on false certification. To be eligible for this discharge, you must meet certain criteria such as:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">School falsely certifying borrower&#8217;s eligibility for federal student aid<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Identity theft cases affecting the borrower<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Instances of misconduct by the school&#8217;s admission representatives<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Death Discharge:<\/b><span style=\"font-weight: 400;\"> Federal student loans are discharged in the event of the borrower&#8217;s death. Check with private lenders if they may have different policies.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Navigating loan discharge or forgiveness can be intricate, and eligibility criteria vary. Remember that the options above predominantly apply to federal student loans, and private student loans may have distinct criteria for discharge. Individuals with private loans should consult their private lender to understand the details and options available for discharge.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Happens_If_My_Student_Loans_Are_Not_Discharged\"><\/span><b>What Happens If My Student Loans Are Not Discharged?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If your student loans are not discharged,<\/span><b> you are responsible for repaying the borrowed amount per your loan agreement<\/b><span style=\"font-weight: 400;\">. Failure to meet repayment obligations has consequences:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest Accrual:<\/b><span style=\"font-weight: 400;\"> Unpaid interest increases your overall repayment cost over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Late Fees: <\/b><span style=\"font-weight: 400;\">Missing payments can lead to added late fees, increasing your financial burden.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Credit Score Impact:<\/b><span style=\"font-weight: 400;\"> Non-payment affects your credit score, potentially impacting loans, housing, and job opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Collection Activities:<\/b><span style=\"font-weight: 400;\"> Defaulting may prompt collection actions, including contact, credit reporting, and legal measures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Wage Garnishment: <\/b><span style=\"font-weight: 400;\">Federal loans may result in wage garnishment without a court order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax Refund Offsets:<\/b><span style=\"font-weight: 400;\"> The government may use tax refunds to recover defaulted student loan debt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deferment or Forbearance Loss:<\/b><span style=\"font-weight: 400;\"> Financial hardship without discharge may end deferment or forbearance options.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Communicate with your loan servicer if you are facing difficulties. They may suggest alternative repayment plans or temporary relief options.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Work_With_Our_Bankruptcy_Lawyers_Today\"><\/span><b>Work With Our Bankruptcy Lawyers Today!<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you&#8217;re considering bankruptcy as a last resort, remember that <\/span><b>student loans are generally not easily discharged<\/b><span style=\"font-weight: 400;\">. Seeking advice from our <\/span><a href=\"https:\/\/pdxlegal.com\/\"><span style=\"font-weight: 400;\">bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at Michael D. O&#8217;Brien &amp; Associates in Portland, OR, can guide your options and potential legal strategies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Student loan bankruptcy is complex, but with proper guidance, it becomes a navigable path toward financial relief. Get a free consultation today!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can Bankruptcy Get Rid of My Student Loans?\u00a0 Understanding the complex terrain of student loan bankruptcy is crucial for those grappling with overwhelming student debt. Contrary to common belief, discharging student loans through bankruptcy is not straightforward. It requires a meticulous approach, and having more knowledge can make all the difference. Quick Summary: Student loans, [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":37830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/37829"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=37829"}],"version-history":[{"count":4,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/37829\/revisions"}],"predecessor-version":[{"id":37834,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/37829\/revisions\/37834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/37830"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=37829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=37829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/tags?post=37829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}