Student Loan Debt - Can You File Bankruptcy in Texas?

If you owe student loans, unfortunately bankruptcy will not provide you with much help. 11 U.S.C. Section 523 (a)(8) defines whether a student loan may be dischargeable. It states that a student loan cannot be discharged "unless excepting such debt from discharge . . . would impose an undue hardship on the debtor and the debtor’s dependants . . ."

When you read that paragraph, it’s very easy to think, “the $1300 I’m paying a month for my MBA is a ridiculous hardship! I can get my loan discharged!”

Unfortunately, that’s not how this provision has been interpreted. Discharging student loan debt is a complicated process that involves filing suit in bankruptcy court against the lender. In simple terms, you have to convince the judge that you will never be able to pay any amount towards the debt and also continue to eat.

I predict that within the next 10-12 years this harsh rule will be lessened. I say this because it’s possible that there could be an entire generation of highly educated 20somethings earning the equivalent of $40,000 per year, but living in poverty because of student loans. Once that happens, there will be the political will to change how and when student loans may be discharged, or partially discharged.

Call us to discuss your particular situation and we will see how or if we can help you. We offer a free confidential, no obligation consultation to discuss your personal situation. Please call (713) 961-9477 for immediate assistance or use the form below to send us a message.

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CONTACT US (Texas Only)

The Schachter Law Firm, P.C.
1800 St James Pl

Phone: (713) 961-9477

Pursuant to 11 U.S.C. Section 101 (12A) we are a Debt Relief Agency. We help people file for bankruptcy as well as resolve other debt issues. Nothing on this page, or on any page on this site, should be construed as legal advice and your use of this site does not create an attorney/client relationship. You cannot create an attorney/client relationship with us until you have met with us and signed a contract.