Student Loans and Filing for Bankruptcy

by | Apr 3, 2013 | Bankruptcy Attorney

The cost of colleges and universities has risen dramatically in the last decade. Many college applicants have to focus on not only the college essay and interview, but also figuring out which loans to apply for and budgeting college costs into their everyday budget.

Unfortunately, many college students graduate with an excessive amount of debt already under their belt due to substantial college loans. While student loans aren’t often included in bankruptcy, an Allentown PA attorney can help you with filing for bankruptcy and determining if your student loans are eligible for bankruptcy under the current law.

Proving Undue Hardship for Bankruptcy

The law continues to change in regards to student loans and bankruptcy. Allentown, PA attorneys have the experience and knowledge necessary to help you determine if you should try to file bankruptcy on excessive student loans. The law currently states that student loans are only eligible for bankruptcy if repayment of the loan would cause undue hardship.

Undue hardship can be difficult to prove to a court of law, so hiring an attorney is important if you plan on winning a bankruptcy case. An example of an undue hardship is if you became injured after graduation and can no longer gain employment, making it impossible to repay student loans. Your bankruptcy, Allentown PA lawyer will help you gather the information needed to prove your case.

Filing Bankruptcy Can Open Up Funds for Student Loans

If your attorney decides that you won’t be able to file bankruptcy on student loans, you may still be able to file for your other debts. If you used a lot of credit cards while in college and have thousands owed to private creditors, find out about other forms of Bankruptcy Allentown PA lawyers that specialize in bankruptcy may be able to help you claim bankruptcy for other debts, which may provide you with some additional funds each month to help pay off student loans.

Rapa Law Office, P.C. offfers Bankruptcy Allentown PA lawyers in big city law firms. Visit for more information.

Latest Articles