Is it easier to clear student loans via bankruptcy than before?

On Behalf of | Jan 8, 2024 | debt relief |

If you have debts you cannot pay, then there is a good chance that student loans make up part of your overall financial challenges. It’s true for vast numbers of people across the country.

Traditionally, student loan debt was incredibly hard to discharge through bankruptcy. One report put the previous success rate at about one in a thousand. Yet, the Biden administration has made several attempts to relieve people of the burden of student loans. Has it succeeded? Is it now easier than before?

While the administration has certainly made some attempts to smooth the process, many of these attempts were squashed by those who do not believe that student loans should be relatively easy to discharge. So, seeking to relieve your student loans through bankruptcy is still not easy, but depending on where you live, it may be easier than before.

The Justice Department said that the “vast majority” of the 630 cases filed in November under the new guidelines the Biden administration managed to get through succeeded in succeeding a student loan discharge, either partially or wholly. That’s certainly a lot better than one in a thousand.

Why does where you live matter?

The report suggests that some assistant U.S. attorneys still fight a lot harder against discharging student loans than others because this is what they’ve always done. Some have been slower to accommodate the new guidelines that are meant to make it easier for everyone to have their student loans discharged, regardless of where they live.

Getting legal help to determine whether you should use bankruptcy to target your student loans or just concentrate on discharging other debts may help you to make the best choices for the current situation.