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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’re facing repayment challenges, you can get student loan help from strategies besides bankruptcy.
For private student loans. Settling a private student loan for less than you owe may also be possible without filing for bankruptcy. This is primarily an option if your loan is in default and the lender doesn’t have strong options to otherwise recover it.
Reach out to your student loan servicer to see what options might be available to you.