How the Process Works
Under the updated guidelines, federal student loans may be eligible for discharge in connection with a bankruptcy filing. However, this process is not automatic.
It involves two distinct steps:
- Filing for Bankruptcy: Whether you file for Chapter 7 or Chapter 13, you must go through the standard bankruptcy process first. This step helps establish your overall financial hardship and sets the stage for potential student loan relief.
- Filing a Separate Lawsuit (Adversary Proceeding): Once bankruptcy is filed, our firm can file a separate legal action against the federal government to request a discharge of your student loan debt. This proceeding presents evidence that repaying the loans would cause undue hardship, based on your income, expenses, and financial future.
Currently, this process applies only to federal student loans, not private loans.
Understanding Undue Hardship in Student Loan Discharge
Student loan debt has long been viewed as virtually non-dischargeable in bankruptcy, creating a significant financial barrier for many Americans.
The updated process offers real relief for borrowers who:
- Are experiencing long-term financial difficulty
- Have made good-faith efforts to repay their loans
- Are unlikely to improve their financial situation significantly
If you meet these criteria, we can help you build a strong case for discharge and represent your interests throughout the legal process.
Why Choose Wagner Law Office, P.C.?
Our law firm focuses on bankruptcy law and has helped hundreds of clients find relief from debt. We stay up to date on changes to federal law so we can offer the most effective solutions available. With the new student loan discharge process, we are ready to help you take the next step toward financial freedom.
Wagner Law Office, P.C. offers personalized legal guidance, starting with a free consultation to assess your eligibility. If bankruptcy and student loan discharge are the right paths for you, we’ll walk you through every stage of the process with clarity and compassion.
If you live in Denver, Centennial, or Colorado Springs and are struggling with federal student loans, contact us online or call (303) 536-5124 today.
