Student Loan Bankruptcy

Although student loans allow many to graduate from college and pursue their career dreams, they can also be devastating to a person’s financial situation. The monthly payments may be too high for someone who has just graduated and is seeking stable employment. In fact, it is not uncommon to find that a large percentage of new college graduates have gone several months without making a payment on their student loans. This is one of the reasons student loan bankruptcy keyword searches have increased online.

For graduates facing mounting student loan debt, bankruptcy may seem like the only logical choice. However, it is extremely difficult for a college graduate to have their student loans discharged in bankruptcy court. Currently, bankruptcy laws require debtors to continue making payments on student loan debt even during bankruptcy proceedings. There is one bright spot in the darkness, though. It is possible that the courts will add your student loan bankruptcy debt to your case to help relieve you of the debt.

Student Loan Default

If you are considering bankruptcy because you are unable to make payments on your student loan, your loan is likely already in default. When a loan is in default, a debtor has failed to make several consecutive payments. This occurs more often than most people think.

Ignoring Debts

The worst thing that you can do is ignore the student loan debt. If you default on a student loan that is owned by the government, you could face financial penalties such as the garnishment of your income or have liens placed on any property you own.

These types of loans are also exempt from the statute of limitations. This means that the courts hold you responsible for the debt for your entire life. Collection fees can add to the balance. If you do not think you have any other options, contact a knowledgeable and experienced bankruptcy attorney in your area.

Getting a Student Loan Discharged

If you want to successfully discharge a student loan, you must prove that the loan is causing you undue hardship. To determine the criteria for this guideline, consult a bankruptcy attorney to see if you qualify.

Student loan bankruptcy discharge is very rare. If you cannot get the courts to discharge your student loans, speak with a bankruptcy attorney to discuss other options.

Are student loans causing you financial issues, and are you considering bankruptcy? Before you proceed, get a free consultation with Douglas Jacobson Law Firm and find out the best solution to your financial problems.