When an individual in North Carolina files for bankruptcy, it can be extremely difficult to discharge their student loans. To get rid of their student loans, the individual must prove that they’ve suffered from “undue hardship” that makes it impossible for them to pay back the loans. Since 2005, this has applied to both federal and private student loans.

To prove that they’ve experienced “undue hardship,” the individual must file for an adversary proceeding. During this time, the individual must prove to the court that they’ve suffered from hardships that affected their ability to pay back the loans. Their lender can also present opposing evidence. The proceedings can be long and expensive and, often, unsuccessful for the person looking to discharge their loans.

However, Democrats in the House of Representatives are trying to change that by writing a bill that would allow people to easily discharge their student loans when they file for bankruptcy. This bill aims to eliminate the part of the bankruptcy code that makes it difficult for individuals to discharge their student loans. However, the bill is unlikely to pass in the Senate.

What’s the best way to file for bankruptcy?

If an individual has tried unsuccessfully to pay off their debts for years, they might decide to file for Chapter 7 bankruptcy. An attorney might be able to help them review their options and figure out the best choice for their situation. They might also be able to help their client figure out which debts can be discharged and which still have to be repaid.

Working with an attorney, a client might be able to file for bankruptcy and start rebuilding their credit as soon as possible. They might also be able to figure out a payment plan for the debts that they still owe.