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Student Loans in Bankruptcy
When someone encounters financial hardship, they often consider filing bankruptcy to help offset their debt and start fresh. However, not all debts are automatically cleared or discharged simply by filing bankruptcy. In fact, there are many new laws that have been set in place that determine just what can be discharged through a bankruptcy claim and what can not be.
You see, back in the seventies, many people enjoyed a wonderful education at the finest schools in America. Once they had graduated they would declare bankruptcy and find all of their student loans were discharged. This is no longer the case. In fact, even when filing a Chapter 7 or Chapter 13 bankruptcy, there is no guarantee that you will have your student loans discharged.
There is a procedure that allows some people to discharge their student loans through bankruptcy, however the person must show that they will suffer undue financial hardship if required to make repayment. It is in your best interest to have a free evaluation with a bankruptcy attorney. He or she can assess your case and review your financial documents. Then they can give you their professional opinion whether or not they believe you can qualify for your student loans to be discharged. Typically, you will need to prove that you will be forced to live at the minimum poverty level if you repay your student loans. Additionally, there is attention given to whether or not you have ever made payment on your loan before as well. If you don’t qualify to have your student loans discharged, you will be able to work out a payment arrangement that fits your needs. It is important to let your attorney know what your needs are and what you are capable of repaying. Your first step is to set up an appointment with a bankruptcy attorney and discuss all of your options.
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When someone encounters financial hardship, they often consider filing bankruptcy to help offset their debt and start fresh. However, not all debts are automatically cleared or discharged simply by filing bankruptcy. In fact, there are many new laws that have been set in place that determine just what can be discharged through a bankruptcy claim and what can not be.
You see, back in the seventies, many people enjoyed a wonderful education at the finest schools in America. Once they had graduated they would declare bankruptcy and find all of their student loans were discharged. This is no longer the case. In fact, even when filing a Chapter 7 or Chapter 13 bankruptcy, there is no guarantee that you will have your student loans discharged.
There is a procedure that allows some people to discharge their student loans through bankruptcy, however the person must show that they will suffer undue financial hardship if required to make repayment. It is in your best interest to have a free evaluation with a bankruptcy attorney. He or she can assess your case and review your financial documents. Then they can give you their professional opinion whether or not they believe you can qualify for your student loans to be discharged. Typically, you will need to prove that you will be forced to live at the minimum poverty level if you repay your student loans. Additionally, there is attention given to whether or not you have ever made payment on your loan before as well. If you don’t qualify to have your student loans discharged, you will be able to work out a payment arrangement that fits your needs. It is important to let your attorney know what your needs are and what you are capable of repaying. Your first step is to set up an appointment with a bankruptcy attorney and discuss all of your options.
Locate a lawyer with a specialty near you for legal services with our lawyer search by zip code.
We've compiled the most comprehensive database of local lawyers and attorneys throughout the country and we'll show you the ones that are closest to you.
Thank you for visiting eLocalLawyers.com and we hope you find this information helpful.