You’ve been struggling with debt for a long time. You owe over $500 in student loan payment every month, which is nearly as much as your $600 in rent. You have a job that pays decently, but with rent, utilities, your loans and other items that you need, you’ve found yourself getting further and further into debt.

When your hours were cut, that put even more pressure on you. If you didn’t have loans, you’d be able to survive, but with them, it’s nearly impossible. What should you do?

If you are considering bankruptcy, you should know that your student loans may be able to be discharged under very specific circumstances. To discharge your student loans, you need to:

  • File for either Chapter 7 or Chapter 13 bankruptcy
  • Show that repaying your loans will impose undue hardship on your dependents and yourself

How can you show that your loans are causing undue hardship?

To show that your loans are causing undue hardship, you should:

  • Show your budget and how paying loans impacts your ability to provide the necessities to your family
  • Provide evidence that your hardship will continue for the length of the loan (or a significant portion of it)
  • Show that you have made an effort to pay back the loan in the past

Many times, student loans are not fully discharged but can still be reduced or placed on different repayment terms. This is something that you should discuss with your attorney, since getting student loans discharged is typically not allowed for in a Chapter 7 or 13 bankruptcy. A strong case showing how badly the loans hurt you may help you become the exception.