You Deserve Financial Relief

Russell G. Small

Lawmakers work to help student loan borrowers

Many different types of debts can be discharged in a bankruptcy. However, student loan borrowers in Connecticut may not be able to get their debts cancelled through this process. That is because lawmakers in previous decades felt that students would try to get out of paying their loans by discharging them after graduation. To get a student loan erased in bankruptcy, a borrower needs to show that he or she cannot keep paying because of an undue hardship.

Unfortunately, there is no standard definition for what an undue hardship is. This can make it difficult for borrowers and advisers alike to predict how a case may unfold. If the Student Borrower Bankruptcy Relief Act of 2019 passes, it would be easier for student loan debtors to erase their balances. It has bipartisan support and has been praised by numerous groups including Americans for Financial Reform.

One potential downside is the possibility that lenders raise interest rates on student loans if they can be discharged in bankruptcy. However, it is thought that lenders may work harder to accommodate borrowers so that they make payments instead of filing bankruptcy. After an initial rise in student loan bankruptcy cases, it is expected that bankruptcies related to student loans would stabilize. Prior to 1976, only 1% of education loan debt was cancelled through bankruptcy.

Individuals who are filing for bankruptcy may be able to keep property and put a temporary end to creditor contact by doing so. Even if a debt cannot be discharged through bankruptcy, it may be possible to get other debt balances reduced or eliminated. Ultimately, this may make it easier to pay a student loan, tax or other balance that remains.

Those who need help with their student loan debt should contact us today.

No Comments

Leave a comment
Comment Information

How can we help?

Financial Freedom Is Just A Call Away

When you are overwhelmed by debt, we can help you explore your options and find relief. Should you choose to file for bankruptcy, calls from creditors and debt collectors come to a stop almost immediately, allowing you to get back to living your life.

Call us today at 800-261-3275 or contact us online to schedule a consultation. Our firm offers evening and weekend appointments and home visits. Credit cards and payment plans are accepted. Se habla Español.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Email Us For A Response

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

get in touch

The Law Office of Russell Gary Small, P.C.

3715 Main Street
Suite 406
Bridgeport, CT 06606

Map & Directions

Hours of Operations:

Monday-Friday:
9 a.m.-6 p.m.
Saturday & Sunday:
By Appointment Only