Although student loans allow many to graduate from college and pursue the careers of their dreams, they can also be very devastating to a person’s financial situation. The monthly payments may be too much for someone who has just graduated and is looking for stable employment. In fact, it is not uncommon to find that there are a large percentage of new college graduates who have gone several months without making a payment towards their student loans. This is one of the reasons why student loan bankruptcy keyword searches have increased on the Internet.
Student Loan Bankruptcy
For graduates who are facing mounting student loan debt, bankruptcy seems to be the only logical choice. However, it is extremely difficult for a college graduate to get his or her student loans discharged by a bankruptcy court. Currently, bankruptcy laws require that the debtor continues to make payments on student loan debt even during the bankruptcy process. 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
It is likely that if you are considering bankruptcy because you are not able to make payments on your student loan, your loan is 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.
The worse 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 find out the criteria for this guideline, consult with 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 you are considering bankruptcy? Before you proceed, get a free consultation with Douglas Jacobson Law Firm and find out the best solution to your financial problems.