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TAMPA, FL, January 20, 2014 /24-7PressRelease/ -- The Tampa bankruptcy attorneys at Clark & Washington discuss the possibility of getting rid of student loan debt via bankruptcy.
Until recently, student loans were immune to the effects of bankruptcy filings; they were considered exempt. To the surprise of many, however, there have been cases where courts have allowed student loans to be wiped clean from an individual's financial burden.
Do Your Student Loans Qualify for Discharge?
Unlike other forms of debt like credit cards, auto loans and medical bills, educational expenses can be incredibly difficult to eliminate. The legal basis judges rely on when making their decision is the Brunner test, which was established by the case Brunner v. New York State Higher Educ. Servs. Corp. in 1987. It states that if it is found that the individual is unable to maintain a minimal standard of living as a result of paying their student loans and that they have made a strong effort to repay their debt, the loans can be effectively discharged.
The Tampa bankruptcy lawyers note that simply because your loans may be eligible, does not mean bankruptcy is the best option. It should always be considered a last resort after all other possibilities have been exhausted. The filing will remain on your credit record for seven to ten years, making it difficult to secure low-interest loans and to even quality for certain jobs. Many employers run credit checks on applicants during the hiring process, which is why taking the time to make the right decision is crucial.
The Tampa bankruptcy law experts at Clark & Washington can help determine whether filing for bankruptcy is a sound financial decision and how likely it is to eliminate your student loan debt. Visit them at http://www.cw13fl.com for more information.
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