Behm Law Group, Bankruptcy Attorneys

For many students nearing graduation in the Waseca, Minnesota area, it can be overwhelming to consider their impending student loan debt. Although many believe that this particular type of debt cannot be discharged through bankruptcy, there are actually a few specific circumstances where bankruptcy can grant individuals relief from their debt.

If you’re struggling to repay student loans or fearful about the future of your upcoming debts, it may be time to take an important examination to determine whether or not you’re eligible for bankruptcy.

In Minnesota, the standard for determining whether or not you’re able to discharge student loan debt through bankruptcy is known as the “totality of circumstances” test. Though school is full of exams and quizzes, this may be one of the most helpful tests you’ll ever take. So, let’s do a little studying up on the totality of circumstances test:

The totality of circumstances test addresses all relevant factors influencing your ability to pay back student loan debt rather than just a few specific ones. Here are a few personal, relevant factors that may impact your ability to pay back your debt:

1. Are you able to purchase necessities such as food and housing? You need food, water, and housing in order to survive. That goes without saying! However, if you’re unable to afford these basic items as a result of your debt, it may be time to consider bankruptcy.

2. Are you trapped in a cycle of debt? This means that you’re continually unable to pay off your loans. If so, this may be a circumstance that can contribute to a bankruptcy filing.

3. Are you working towards repaying your debt? Making regular payments certainly shows that you’re putting in the effort to be rid of your debt, but if that effort is not enough, bankruptcy may be a viable option!

In the Waseca, Minnesota area, discharging student loan debt through bankruptcy may be the best option for people who pass the totality of circumstances test. To determine your eligibility, or to learn more about bankruptcy filings, contact the professionals at Behm Law Group Ltd. today.