Many people understand the concept of student loans. Current students or aspiring ones apply for them to cater to tuition and other related expenses. You may be aware that discharging student loans in bankruptcy is complicated. However, it doesn’t necessarily mean student loans cannot be eliminated by filing bankruptcy.
Ultimately, a bankruptcy court judge will decide whether you can get rid of it through bankruptcy. If the court determines you are not eligible, you can explore other debt relief procedures to make your student loan more manageable. Although student loan bankruptcy discharge is possible, it only works in some situations.
Have you tried all the payment options? If your federal student loan is due, evaluate whether you can afford to repay using your income or consider a loan forgiveness program. Private loans only offer a few options for students who may be struggling to repay. However, you can contact your lender and inquire whether they can lower the interest rates.
Another situation when you should consider filing bankruptcy is if you are past-due on your debt. If you have been repaying the loan on time, you may have difficulty proving that you are undergoing hardship. A bankruptcy filing is an ideal option if you default private student loans, and the lender is threatening to sue you and garnish your wage.
How Do You File for Student Loan Bankruptcy?
Discharging of the debt only comes at the end of the bankruptcy process. You need to take several steps to get there. First, you need to find a bankruptcy attorney. The legal experts understand the bankruptcy law and will offer the help you need. Working with an attorney makes it easy for you to navigate through the entire process smoothly.
Generally, bankruptcy filing costs between several hundred to several thousand dollars. This varies depending on the complexity of a case. A lawyer is also knowledgeable about the process and will offer insights on how to go about it.
When looking for a reputable attorney, you can ask for referrals from friends and relatives. Alternatively, visit the local bankruptcy court to get more information. The internet is also an excellent tool to find a bankruptcy lawyer. Ensure you only use credible resources.
You can file for Chapter 7 or 13 bankruptcy. An attorney can help you to decide the best course of action for your situation. Did you file for bankruptcy but forgot to request the discharge of your student loan? If yes, you can reopen the case and ask the court to clear the loan. Next, file a complaint to start the adversary proceedings.
When it comes to student loan bankruptcy, you need a lawsuit called an adversary proceeding. For this process to start, you will be required to make a written complaint and outline your case. At the end of the process, you may receive a full discharge, partial discharge, or no discharge.
Do you need legal services for your bankruptcy case? Fair Fee Legal Service has your back. Our law firm has a team of attorneys who are committed to lead a debt-free life. Give us a call today.
Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101 Las Vegas, NV 89123
https://www.fairfeelegalservices.com/
702-703-3333
