All things considered, the burden of proof is a heavy one for the debtor and will require the assistance of a knowledgeable bankruptcy attorney who fully understands the obstacles involved in discharging student loan debts in Missouri.
Simply put, if the debtor’s reasonable future income or earning potential will allow for a payment of the student loan debt while still allowing for a minimal standard of living then the debt will not be discharged. You will certainly want the honest opinion of an experienced bankruptcy lawyer.
What will happen to your student loans if you file bankruptcy? In most cases the student loans are not discharged in bankruptcy. If you file a Chapter 7 bankruptcy you will still owe the student loan debt after the bankruptcy case is discharged and closed.
When filing a Chapter 13 bankruptcy, there are a few options. The debts will still not discharge in the Chapter 13 but you may be able to reduce the payments temporarily, stop the student loan payments temporarily, or even pay the student loans through your Chapter 13 repayment plan.
An attorney with expertise in structuring a Chapter 13 plan can determine the best way to handle your student loan debt in a Chapter 13 bankruptcy in Springfield.
Call Licata Bankruptcy Firm PC at (417) 213-5006.