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The bottom line: Lexria can connect you with an attorney who has previously helped student loan borrowers dismiss their debt via bankruptcy. It is best for borrowers with private student loans who’ve already completed a bankruptcy filing — ideally, within the past five years — but did not include that debt.
Student loan bankruptcy help
$299 upon signing with an attorney.
$299 monthly payments during litigation.
12% of any amount eliminated by bankruptcy; if no debt is discharged, you pay nothing and fees are refunded.
Currently available only in certain states. Contact Reset Button for details.
Pros & Cons
Money you pay is returned if your student debt is not reduced or discharged.
Monthly payment plans for legal fees are available.
Lawyers may not be available in your area.
Monthly payments of $299 are due during litigation.
Lexria launched its services in February 2020, originally under the name Reset Button. Lexria is not a law firm, nor does it offer legal advice. Rather, it is a technology company that connects student loan borrowers with experienced bankruptcy attorneys.
While it’s possible to dismiss student loans via bankruptcy, few borrowers take this step. One of Lexria’s co-founders, Jason Iuliano, an assistant professor of law at Villanova University, found that just 0.1% of borrowers attempted to discharge student loans when filing for bankruptcy.
That low number is partly because obtaining relief presents multiple hurdles, including:
Finding a bankruptcy attorney who understands the student loan landscape.
Paying additional bankruptcy costs, for a lawsuit known as an adversary hearing.
Overcoming the lack of a set standard for dismissing loans via bankruptcy.
Lexria aims to address these challenges: It connects you with bankruptcy attorneys who’ve had success obtaining student loan relief, and it has a “Fresh Start Guarantee” that refunds your money if no debt is discharged.
Lexria can’t do anything about murky bankruptcy standards — nor the fact that student loan companies aggressively fight these lawsuits. Its Fresh Start Guarantee refunds anything you pay out of pocket if your filing is unsuccessful, but you’ll still need to pay the $299 each month during litigation.
Ultimately, talking to a lawyer in Lexria’s network costs only your time; you don’t pay anything until you sign with an attorney. But even if you both think your student loans should be dismissed via bankruptcy, you still might not end up with the relief you want or need.
Options besides bankruptcy
Lexria is not a law firm and cannot advise you whether to file for bankruptcy in the first place. Bankruptcy may make sense if:
Your consumer debt — like from credit cards or medical bills — is more than half your income.
It would take at least five years to pay off that debt.
If you need student loan help
If you’re struggling with student loan debt, first speak with your servicer or lender to:
Discuss repayment options.
Take a temporary payment pause.
Temporarily reduce your monthly payments.
If the problem is with your lender or servicer or you’re not getting the help you need, look for a legitimate student loan help organization that offers counseling. In addition to Lexria, consider these other vetted resources for student loan help; they're established organizations or legal representatives with verified histories:
Student loan help resource
Advice on repayment plans, forgiveness programs and dispute resolution.
Comprehensive information on options for student loan borrowers.
Advocacy on behalf of all borrowers to influence policy.
Complete financial review for struggling borrowers, which can include advice on student loan options and plans for dealing with other debt.
Advice on repayment plans, help with paperwork and budget counseling.
Information for student loan borrowers and an attorney directory.
Help for borrowers who have already filed bankruptcy that did not include their student loans.
Advice on defaults, dispute resolution, collections, debt settlement and legal remedies. Licensed in Massachusetts and New York.
Advice on debt settlement, bankruptcy, default and forgiveness. Licensed in Missouri and Illinois.
Many of these organizations offer advice for free. In some cases, you may need to pay a fee, as with a certified nonprofit credit counseling agency or if you hire an attorney.
None of the organizations above calls, texts or emails borrowers with offers of debt resolution.
Offers of help that you haven't sought out are likely to be scams. While it’s not illegal for companies to charge for services such as consolidation or enrollment in a payment plan, those are steps you can do yourself for free.
Avoid any debt relief companies that demand money upfront.
» MORE: How to spot student loan scams