Consolidating private loans without a cosigner
Keep in mind too that even if you don’t qualify for a full discharge, you may end up being eligible for having some percentage of your private student loan debt erased during bankruptcy proceedings.
The relationship between bankruptcy and private student loans is definitely complicated, but this article should help you figure out just how to take advantage of the available opportunities.
If you’re a new phone each year, taking vacations, and eating avocado toast, then you won’t qualify for a bankruptcy discharge, no matter how much you owe, or how little you make.
This page explains the student loan bankruptcy discharge process in detail, walking you through the different types of Bankruptcies (Chapter 7 vs.
The Johnson Test for undue hardship is pretty similar to the Brunner test in that it tries to assess whether or not your private student loan debt will destroy your ability to maintain a minimal standard of living, but it’s more comprehensive than the Brunner test.
This test evaluations the following factors: Just like the Brunner test – you’d better look like you’ve tried to pay off your debt, minimize expenses and reduce the amount of money that you “wasted” on inessentials.
If you can’t afford to pay off your private student loans because you blew all the money for them on personal possessions, luxury expenses, or comic books, then you won’t be able to get the debt discharged in bankruptcy when the court applies the Brunner test.Getting your private student loans discharged during bankruptcy proceedings doesn’t happen automatically, as it’s not part of the basic bankruptcy process.