The Department of Justice has announced new guidelines that make it much easier to get rid of student loans in bankruptcy. Previously it was almost impossible to get rid of student loans in bankruptcy without showing an utterly hopeless situation.
But under the new guidelines,
- If your expenses equal or exceed your income,
- And your inability to pay the loans is likely to persist in the future,
- And you have made a good faith effort to earn income, manage expenses, and repay the loans
You may qualify for a bankruptcy discharge of federal loans, (for which the Department of Education is the holder or guarantor of the loan). Reach out to Mr. Knowles for more information and assistance with your student loans.