I would like to file Chapter 7 and I would like to file my student loans under Undue Hardship as I have in good faith tried to work with the lenders but they are giving me a hard time. I need to do this as soon as possible as one of the lenders are about to regarnish my loans.
You can try, but it is extremely unlikely that you will be successful in discharging your student loans. I recommend you talk to a bankruptcy attorney so that they can explain this in further detail.
Most student loans can not be discharged in bankruptcy. Use the find an attorney tab on this site and contact a bankruptcy attorney to determine if you are a candidate for bankruptcy and if the student loans can be discharged.
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Currently, to discharge a student loan requires the debtor to be in dire straights. (That is not a legal term!) That means that you either have to be medically unable to work and your income cannot pay back the loan or some other irreversible circumstance has occurred that will make it impossible for you to repay the loan. There are other options however for you to consider such as consolidating the loans, modifying the loans or asking for repayment forbearance for a period of time until you can get on your feet. Also, consider filing a chapter 13 bankruptcy case which may enable you to repay the loan in smaller monthly payments for 3 to 5 years which may give you time to eliminate your hardship. Talk to a bankruptcy attorney without delay to explore your options. Good luck!
Any advice given in this matter is general information and educational and is not intended to give the recipient legal advise for the State of their residence. This attorney is licensed to practice law in Illinois only and is not qualified to give legal advice about another State's law. It is strongly advised that the recipient consult with an attorney licensed in the State of their residence.
Undue hardship is a tremendously hard standard to meet. The inability to reach a resolution with your lender is not sufficient. You should speak with an attorney familiar with student loan law to discuss your options.
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