Student Loan Discharge
Student loan debt can be one of the most difficult financial burdens to overcome. As repayment programs continue to change and collection efforts resume, many borrowers are facing the reality that their student loan payments are no longer manageable.
At Berken Cloyes, our bankruptcy attorneys help individuals in Denver determine whether their student loans may be eligible for discharge through bankruptcy and other debt relief options. We work directly with clients to stop collections, protect income, and create a clear path toward financial relief.
If you are overwhelmed by student loan debt, it is important to understand your legal options before collections begin or worsen.
Answer a few quick questions and get a personalized review
Can Student Loans Be Discharged?
In certain cases, student loans can be discharged, but they are not automatically eliminated like other types of debt.
To qualify, you must prove “undue hardship” through an adversary proceeding within a bankruptcy case.
The court will evaluate factors such as:
- Your current income and necessary living expenses
- Whether repayment prevents a basic standard of living
- Whether your financial situation is likely to improve
- Your past efforts to repay the loans
This process involves presenting detailed financial information and demonstrating that repayment is not realistically possible over time. While the legal standard is strict, courts have become more open to granting relief in appropriate cases.
Our attorneys at will evaluate your situation and determine whether pursuing discharge makes sense.
Why More Borrowers Are Looking for Long-Term Relief
Temporary student loan relief programs in Denver have helped many borrowers, but they do not eliminate the debt. As these programs phase out, collections are expected to resume.
According to recent reports, borrowers have been given additional time before collections restart, but that relief is temporary. Read more here.
When collections resume, borrowers may face:
- Wage garnishment
- Tax refund offsets
- Increased interest and penalties
- Serious credit damage
For many people, the issue is not temporary relief—it is finding a long-term solution. If your financial situation has not improved, it may be time to explore whether student loan discharge is a realistic option.
How Bankruptcy Can Help With Student Loan Debt
Bankruptcy is often a key part of pursuing student loan discharge and gaining financial relief. Filing for bankruptcy can immediately stop collection efforts and give you the breathing room needed to evaluate your options.
Bankruptcy can:
- Stop collection actions through the automatic stay
- Prevent or stop wage garnishment
- Eliminate credit card and medical debt
- Free up monthly income
- Create a path toward long-term financial recovery
In many cases, reducing or eliminating other debts makes student loan obligations more manageable. Depending on your situation, Chapter 7 or Chapter 13 bankruptcy may be appropriate, and each option has different benefits when it comes to protecting your income and assets.
Learn more about your options by speaking with a Denver bankruptcy attorney or contact us to review your situation.
Types of Student Loans That May Be Considered
Both federal and private student loans may be considered in a discharge request, but each case is evaluated individually. The type of loan does not automatically determine whether it can be discharged.
Factors that may impact your case include:
- The total amount of debt
- Your income and long-term financial outlook
- Whether the loans are federal or private
- Your repayment history
Because every case is different, it is important to have your situation reviewed by an experienced bankruptcy attorney. At Berken Cloyes, we take the time to evaluate all relevant factors before recommending a strategy.
Other Debt Relief Options We May Review
Student loan debt is often only one part of a larger financial situation. We help clients evaluate all available options.
Other options include:
Our attorneys take a comprehensive approach to help reduce financial pressure and find the most effective solution for your situation.
When to Speak With Our Bankruptcy Attorneys in Denver
If you are experiencing any of the following:
- Your student loan payments are no longer affordable
- You are behind on payments or in default
- You are facing collections or wage garnishment
- You are dealing with multiple types of debt
The sooner you take action, the more options you may have to protect your finances and avoid further damage.
Frequently Asked Questions About Student Loan Discharge
Can student loans really be discharged in bankruptcy?
Yes, in certain cases student loans can be discharged, but you must prove undue hardship through a separate legal process within your bankruptcy case.
What is an adversary proceeding?
An adversary proceeding is a lawsuit filed within a bankruptcy case to determine whether your student loans qualify for discharge based on your financial situation.
Will bankruptcy stop student loan collections?
Yes, filing bankruptcy can immediately stop most collection actions, including wage garnishment, through the automatic stay.
Do I qualify for student loan discharge?
Qualification depends on your income, expenses, future financial outlook, and repayment history. Our attorneys at Berken Cloyes can review your situation during a free consultation.
Are private student loans dischargeable in bankruptcy?
In some cases, private student loans may be discharged depending on the terms of the loan and your financial situation. Our attorneys at Berken Cloyes can review your case during a free consultation.
What if I can’t pay my student loans?
The Federal government can garnish your wages, hit your bank account, intercept your tax refunds, even garnish your Social Security check—all without going to court.
What can you do?
Just relax. In November of 2022, the rules regarding student loan discharges changed for the better. If you qualify, we know how to get the student loans. But, you need to take the initiative. That means you need to call us.
Schedule Your Free Consultation
If you are struggling with student loan debt in Denver, the attorneys at Berken Cloyes are here to help.
Call us now at (303) 623-4357 to schedule a meeting in our office. We will review your student loan debt and discuss your options. We will send you a short questionnaire, will analyze the answers and give you a firm sense whether you qualify to get rid of your student loans.
If you are tired of the calls, the threats, the garnishments, then call us today to set a time to talk. Your peace of mind is important to me.
