If the majority of your debt comes from student loans, you may wonder if it's possible to get a student loan hardship discharge. In most cases, this isn't possible, so you will need to look into alternatives. However, for some people, a hardship loan may be possible.
How to get a Student Loan Hardship Discharge
In order to get a student loan hardship discharge during bankruptcy, you will need to file an "adversary proceeding" through the bankruptcy court. The court will then determine if you meet the requirements. In most cases, you will need to prove:
- You made an effort to repay your student loans
- You cannot repay your loans and maintain a minimal standard of living
- You have a disability or other long-term situation that is beyond your control
If you are starting the process of filing bankruptcy, you can take this step during the initial filing. Once you have filed bankruptcy, you can reopen the case to file the proceeding. If you file chapter 7 bankruptcy, you may get the entire amount discharged. However, if you file chapter 13 bankruptcy, you may still have to repay a portion of the loans.
Re-establishing Your Credit after Bankruptcy
If you successfully had your student loans discharged due to hardship, you will need to work on re-establishing your credit after a bankruptcy. One of the best ways to do this is by getting an auto loan and making all of your payments on time. Here at BankruptcyAutoFinancing.com, we can help make this a reality for you.
Our network of lenders has a variety of options available for you to get into the car, truck or SUV that you desire. To get started, simply fill out our simple online application, and you could be driving a quality pre-owned vehicle in just a few days. Since all of our lenders report your on-time payments to the major credit bureaus, you will also be on the road to financial success.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.