It seems like every penny I earn (and more) goes towards paying off my student loan, and I am swimming in debt—will filing for bankruptcy in Phoenix help?

Whether you are a Sun Devil or a Wildcat, one thing is certain—you student loan debt is a burden. For many people, student loans stay with them for decades, and drain hundreds of dollars a month out of their disposable income. If they are lucky, they do not have many other large outstanding debts, so it is simply another bill to pay. If you are swimming in debt, however, the student loan payment could be what makes you drown.

While the standard rule is that student loan debt is not dischargeable in an Arizona bankruptcy case, there are always exceptions to rules. Courts are always hesitant to dismiss your student loans, but if you have a solid case, you may be able to discharge part (or even all) of your loans.

The Brunner Test: Measuring Hardship

One of the most common means of proving undue hardships is the three-part Brunner test. To discharge a sum or all of your student loan debt, you must meet all three requirements:

  • Your student loan payments make it impossible to maintain a minimal standard of living based on your current salary.
  • Your current financial state is not expected to improve over the span of your repayment.
  • You have made every effort to make your student loan payments in full and on time.

Even if you “pass” the Brunner test with flying colors, it can still be an uphill battle discharging your student loan debt in both Chapter 7 and Chapter 13 bankruptcies. Our experienced and tough Phoenix bankruptcy attorneys can help you determine your odds for successfully discharging your loans, or help you make a plan to lower your payments considerably over the course of your bankruptcy. Call Curry, Pearson & Wooten at 602-258-1000 today to set up a complimentary consultation to discuss a solution that works for you.