Student Loan Debt Driving You to Bankruptcy?
Call 800.843.1165 for Comprehensive Legal Assistance
A commonplace nightmare amongst the college students of today is getting
trapped in student loan debt. Tuitions can costs thousands, if not hundreds
of thousands, of dollars, and it can be a real struggle to pay off any
loans. If you are in this very same scenario and do not know what to do,
take solace in knowing that you are not alone and there is help out there for you.
Contact a Boca Raton bankruptcy attorney
from the Law Offices of David Kovari, P.A. when you are facing student
loans and bankruptcy.
Why Bankruptcy Might Not Discharge Your Student Loan Debt
Many American students each year are filing for
bankruptcy as their debt pushes them far beyond their financial limit. While filing
for bankruptcy will create an automatic stay – creditors will not
be able to harass you for payment and your wages cannot be garnished –
it is only a temporary solution; once your bankruptcy case is resolved,
the automatic stay disappears.
There is also nothing that guarantees that bankruptcy, either
Chapter 7 or otherwise, will fully
or partially eliminate your student loans. Unlike many other financial issues,
student debt is not given any priority in a bankruptcy case. This means
that your payments or properties that are involved with your bankruptcy
are unlikely to be used towards paying off your student loans. If you
are approved for bankruptcy, when everything is said and done, you could
very likely still be faced with your untouched student loan debt.
Understanding Undue Hardship
In most cases, you will have to prove to a judge that your student loan
debt is putting you in “undue hardship.” To do so, you must
provide extensive financial records, employment histories, proof of your
loans or debt, and much more documentation. It is absolutely encouraged
that you retain a bankruptcy attorney for this process.
With a solid case, you may be able to prove that you are in undue hardship,
- You cannot maintain a minimal standard of living if you keep repaying your loans
- Your difficulties will persist for most of the debt’s existence and
several years after it is paid
- You have earnestly tried to repay the loan but still cannot
Boca Raton Bankruptcy Attorney Finding the Right Solution
If you do not want to pursue proving undue hardship, our firm can help
you find other resolutions to your situation. In particular, filing for
Chapter 13 can provide you with much needed relief by reevaluating how much you owe
and how you can fairly pay it off over the course of several years. If
you are approved for Chapter 13 bankruptcy, it will determine your student
loan payments, not your lender.
At the Law Offices of David Kovari, P.A., we have devoted over 20 years
of our legal practice to helping people just like you find fair and amicable
solutions to their student loan debts and bankruptcy cases. If you are
ready to take the next step in solving your financial worries, do not
contact us today.