How do I obtain a discharge of student loans in Chapter 13 Bankruptcy?

In Virginia, obtaining a discharge of student loans in Chapter 13 Bankruptcy can be a complicated process. To start, you must file a motion in the bankruptcy court asking for the student loan to be discharged. The motion must be accompanied by an affidavit that explains why the student loan should be discharged. The court will then examine the facts of the case to decide if the student loan should be discharged. In addition, there must also be a showing of undue hardship; the debtor must prove to the court that repayment of the loan would cause the debtor to suffer undue hardship. To do so, debtors must provide evidence of their financial situation (including income, expenses, and assets) and demonstrate that they cannot pay the loan without risking their ability to maintain a minimal standard of living. Finally, the court will consider any relevant policy considerations when deciding whether to discharge the student loan or not. Therefore, the court may take into account the intent of the original loan agreement, the overall financial circumstances of the debtor, and any other facts that it finds relevant. Once the court is satisfied of the facts and that undue hardship has been shown, it may grant the debtor’s motion and discharge the student loan. The discharge, however, does not relieve the debtor from any liability on the loan unless the loan is paid in full. If payment is made in full, the court may order the lender to release the debt from the debtor’s obligations, and the debt will cease to exist.

Related FAQs

How do I obtain a discharge of student loans in Chapter 13 Bankruptcy?

Related FAQs

Related Blog Posts