Student Loans & Bankruptcy

Student loan debt can be a significant burden, and while bankruptcy doesn’t automatically discharge student loans, there are circumstances where relief may be possible. At Blake Goodman, PC, Attorney, we understand how crushing student debt can affect your financial stability and quality of life. Our experienced team will help you explore whether your situation meets the strict criteria for student loan discharge through bankruptcy. We are committed to helping you find the best path forward, whether that involves addressing your student loans directly or pursuing other forms of debt relief to ease your financial strain.

How We Can Help

Recently, student loans have surpassed credit cards as the largest amount of unsecured debt owed in our country. Unlike medical bills, credit cards, and other unsecured debt, a student loan is generally not eligible for discharge in a bankruptcy. However, our Honolulu bankruptcy lawyers can help you understand your options and provide guidance on managing your student loan debt alongside other financial obligations.

How Can Bankruptcy Help with My Student Loans?

The vast majority of people with student loans will not be able to discharge their debt in bankruptcy. However, this does not mean that we cannot help you. If you file Chapter 13 bankruptcy, you will work out a payment plan with your lawyer and the bankruptcy court, which can include your student loans. This means that you will pay down the loan throughout the plan and receive a discharge of other unsecured debts. After completing the Chapter 13 payment plan, you will be in a better position to pay your student loans.

Additionally, upon filing for bankruptcy under either Chapter 13 or Chapter 7, all collection attempts from your student loan lender will halt. This means no more harassing telephone calls or letters, and you can stop wage garnishments or other forms of collection against you.

When Are Student Loans Dischargeable?

Although it is generally the case that a student loan is not dischargeable in bankruptcy, It’s not impossible. In certain extreme situations, you may argue that repaying the loan would put you through unimaginable and undue hardship. In the vast majority of cases, a person would need to demonstrate extraordinary circumstances to discharge a student loan.

The crux of the hardship discharge is to prove the following factors:

Paying back the loan would make you unable to maintain a minimal standard of living
Your current financial situation will remain in its current state for a number of years
You have made a good faith effort to pay the loan

Student Loan Debt Settlement

Student loans are not as easily discharged in bankruptcy as other kinds of debt. However, we also offer debt settlement, which might be a good solution to easing your financial burdens.

A student loan can originate both from the federal government and private financial firms. The laws concerning how the loans are handled and collected can be more complicated than in other forms of debt settlement solutions. Though the lender may have their own repayment program, a bankruptcy lawyer may be able to negotiate a plan that is far easier on your wallet. It will allow you to maintain a comfortable standard of living while still making payments.

I was very pleased with the outstanding service.

"I was very pleased with the outstanding service you provided. You and your staff consistently made extra efforts in assisting me with my bankruptcy case. I will definitely recommend your business to others because of my satisfaction with your service."

Phetsamone Vuong

Mr. Goodman and his staff were great.

"Mr. Goodman and his staff were great and worked with me every step of the way."

Randi Brown

Responsive, knowledgeable, and very thorough.

"Blake Goodman provided professional and outstanding legal advice. They are responsive, knowledgeable, and very thorough. I would recommend his firm with complete confidence knowing that they will receive the best possible service."

Moune Romano

I’m very grateful to Mr. Goodman.

I’m very grateful to Mr. Goodman for the effort and patience he had with me and my daughter. I appreciate it. As for his staff members, they are very kind. My grand-daughter reports to me that Mr. Blake Goodman is a very highly honored attorney.

Martha Aki

Everything is possible with you. Thanks on a job well done!

I am very pleased with your services and would wholly recommend your excellence to everyone. I am happy with the outcome of my case. Everything is possible with you. Thanks on a job well done!

Randy Borges

Mr. Goodman and his staff are so nice and personable.

When I first came to Mr. Goodman’s office, I was prepared to file bankruptcy – I was tens of thousands of dollars in debt and could see no way out. He helped me work out a payment plan then negotiated with my creditors on my behalf...

Steve