Over the past few weeks, we’ve been examining how to discharge student loan debt in the Mankato, Minnesota area. Bankruptcy is an option in specific circumstances, but does not always apply to every student. So, how are you supposed to know whether or not your case is valid?
This week, we’ll take a look at a few cases of student loan debt that arrived in bankruptcy court. Although some were more successful than others, each of these cases offers an important look into the world of discharging student loans through bankruptcy:
- Case One: This case involves a telemarketer working for $8.50 per hour. At fifty years old, barely making enough to get by, this person was released from their student loans through bankruptcy because they were trapped in a cycle of poverty and debt.
- Case Two: A part-time cellist and music instructor came to bankruptcy court after years of attempting to pay student loan debt. This person was denied their claim because, despite their college degree, they had chosen to accept low paying work. The courts ruled in this case that the individual could be capable of earning more money.
- Case Three: A married couple obtained a discharge through bankruptcy because they were both working part time jobs and paying private school tuition for their children. The courts ruled this couple could follow a future repayment plan for their student loans.
- Case Four: Generally speaking, if the borrower attended a school deemed fraudulent, or if their education was not ultimately beneficial to them, the courts often rule to discharge the borrower’s loans through bankruptcy.
There are a number of ways in which student loans can impact people in the Mankato, MN area. Whether you’re trapped beneath your student loans, or curious whether or not you may have a bankruptcy case, the professionals at Behm Law Group, Ltd. are here to help. Give us a call today.