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Florida students may wish to consider bankruptcy for loan debt

The idea of going to school, gaining a desired job and achieving financial success is one that many Florida residents hold. Unfortunately, many students who attempt to follow such a path often find themselves burdened by student loan debt. However, there is a possibility that bankruptcy may be able to help some individuals alleviate that burden.

It was recently reported that more individuals are using this method of debt relief to address their student loan debt. In the past, this type of debt was not permitted to be discharged through bankruptcy due to not meeting certain criteria. However, because of vague wording regarding the definition of student loans, individuals have come away from cases successful in discharging their debt.

Some individuals have used arguments relating to a college not being accredited or that loans were used in order to study for major exams. Due to these conditions, individuals believed that their loans did not fit the definition provided in the Bankruptcy Code. The report stated that there were multiple instances in 2016 in which bankruptcy courts ruled in favor of student loan borrowers and debts were forgiven.

Because bankruptcy was often not thought to be a viable option when it comes to student loans, many individuals may have written this path off as unavailable. However, Florida residents may be able to work with this debt management option and provide a strong argument as to why their loans should be discharged. If individuals who are struggling with student debt wish to give this avenue a chance, they may want to confer with experienced attorneys.

Source: thestreet.com, "Student Loan Borrowers Increasingly Turning to Bankruptcy to Alleviate Burden", Amanda Schiavo, Dec. 31, 2016

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