Can I Discharge Student Loans Along With Other Debts In Bankruptcy?
If you have read recent news about student loans and bankruptcy, you likely know that the U.S. Department of Justice released new guidance on the process for discharging student loans in individual bankruptcy cases. Discussing the new guidance, an Inside Higher Ed article noted that the new guidance may indeed “provide a meaningful avenue for relief” for many debtors who are struggling with student loans, but we have yet to see the full results. As you are contemplating filing for bankruptcy to have your student loans discharged, you may be wondering if the new guidance will impact other types of debt in the same bankruptcy case. In other words, can you discharge student loans along with other types of debt in a bankruptcy case?
Our bankruptcy lawyers in West Palm Beach can give you additional information, and we can begin working with you today on your bankruptcy case.
Bankruptcy Cases Can Allow Multiple Types of Debt to Be Discharged
When a debtor files for consumer bankruptcy under Chapter 7 or Chapter 13, they are not usually seeking the discharge of just one type of debt. Indeed, U.S. bankruptcy law allows a debtor to ask for multiple debts to be discharged in a given bankruptcy case. When you file a bankruptcy petition, you will provide detailed information about your debt that will clarify the type and nature of each kind of debt. As long as the various types of debt you owe are dischargeable, then they can be discharged in a single bankruptcy case.
Student Loans May Be Discharged
If you are thinking about filing for bankruptcy to have student loan debt discharged alongside other types of debt, you should know that student loan debt may be able to be discharged now given new guidance from the U.S. Department of Justice. Instead of needing to go through a lengthy and expensive process, much of the information you will need to supply to show that you qualify for a student loan debt discharge will come from a document known as an attestation form.
Other Types of Debts Can Be Discharged in a Bankruptcy Case That Includes Student Loans
When you are seeking to have student loan debt discharged, you can also seek to have a wide variety of other types of consumer debt discharged. Examples of types of debt that might commonly be discharged in a single bankruptcy case in addition to student loan debt include but are not limited to:
- Credit card debt;
- Medical debt;
- Vehicle loan debt;
- Personal loan debt; and
- Mortgage debt.
Contact a West Palm Beach Bankruptcy Lawyer
Anyone who is considering the possibility of filing for bankruptcy to discharge student loans should get in touch with one of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan & Eller for more information. We have years of experience representing individuals in various types of bankruptcy proceedings, and we are ready to assist you with your bankruptcy case under the new guidelines for discharging student loans.
Sources:
insidehighered.com/quicktakes/2022/11/18/doj-outlines-process-student-loan-relief-bankruptcy
law.cornell.edu/uscode/text/11
