Understanding Student Loans
Explanation of Your Rights to Reduce Debts
Unfortunately, student loans are not dis-chargeable through bankruptcy. Instead, individuals normally have to pay back their student loans in full. If you need to repay student loans, then you should talk with a skilled bankruptcy attorney at The Golden Law Group right away to receive information about debt reduction.
Reach to the Golden Law Group online or call (813) 212-4355 to a free initial consultation!
We serve clients throughout Tampa and Brandon.
Why Do I Need a Student Loan Attorney in Florida?
When it comes to student loans, it’s important to know all of your options and to have someone on your side who knows the ins and outs of the process. That’s where a student loan attorney comes in.
There are a number of reasons why you might need a student loan attorney in Florida. Perhaps you’re struggling to make your monthly payments and are considering bankruptcy. Or maybe you’re being harassed by debt collectors.
Whatever your situation, it’s important to know that you have options and that there is help available. A student loan attorney can advise you on your best course of action and help you navigate the often complex and confusing world of student loan debt.
Here at Golden Law Group, we have over two decades of experience helping people with their student loan debt. We can help you understand your options, file for bankruptcy if necessary, and represent you in court if necessary. We offer free initial consultations, so please don’t hesitate to contact us to discuss your situation.
Chapter 13 Bankruptcy & Student Loans
If you choose to file for Chapter 13 bankruptcy, you can organize the student loans you owe into a consolidated repayment plan. Your plan can be paid over the next three to five years. For many struggling debtors, this may help to reduce the pressure of regular payments on your loans.
Putting your student debt into a repayment plan can also help you to reduce the costs of penalties and interest that would accumulate over the normal length of the debt. Without accruing interest, you could save thousands of dollars! Using this approach, you can ultimately set yourself up for the best possible recovery after a financial setback.
Undue Hardship Exception
There is an exception that exists regarding the rule of not discharging student loans. If you can demonstrate that it would be an undue hardship to pay your debts, then you may be able to get them discharged.
Some courts utilize the Brunner test to determine whether or not they should discharge student loans, which includes the following factors:
- Poverty – based on current income or expenses, you cannot maintain a minimal standard of living for yourself and your dependents if you are forced to repay the student loans
- Persistence – whether or not your current financial situation is expected to extend into the future
- Good faith – you have demonstrated good faith in an effort to repay your student loans
Most courts are reluctant to authorize the discharge of student loans. You may have a chance if you can show evidence that you have very low income or your loans are from a for-profit trade school.
What are Student Loans?
Student loans are a type of debt that is used to finance a student’s education. These loans are typically issued by the federal government, but there are also private student loans available.
Student loans come with a number of benefits, such as low-interest rates and flexible repayment options. However, they can also be a burden if you’re not able to make your payments.
What happens if I can’t make my student loan payments?
If you can’t make your student loan payments, you have a few options. You can try to work out a new payment plan with your lender. You can also consolidate your loans, which can lower your monthly payments.
If you’re still having trouble making your payments, you might be able to defer your loans. This means that you can temporarily stop making payments on your loans. However, interest will continue to accrue during this time.
Another option is to forbear your loans, which means that you can temporarily stop making payments on your loans and the interest will not accrue. However, this option is typically only available if you’re facing a financial hardship.
What is bankruptcy?
Bankruptcy is a legal process that allows you to discharge some of your debts. When you file for bankruptcy, an automatic stay is placed on all collection activity, including lawsuits, foreclosures, and wage garnishments.
There are two types of bankruptcy that individuals can file: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is also known as liquidation bankruptcy. With this type of bankruptcy, you can discharge most of your unsecured debts, such as credit card debt and medical bills.
Chapter 13 bankruptcy is also known as reorganization bankruptcy. With this type of bankruptcy, you can discharge some of your debts and create a repayment plan for the rest.
Can I discharge my student loan debt in bankruptcy?
As we mentioned earlier, student loan debt is one of the most difficult types of debt to discharge in bankruptcy. In order to discharge your student loan debt, you must prove that paying back your loans would cause you an undue hardship.
This is a very high standard to meet and it’s not easy to do. In most cases, you must show that you’ve made a good faith effort to repay your loans and that you’re unable to maintain a minimal standard of living if you’re required to repay your loans.
It’s important to note that even if you can’t discharge your student loan debt in bankruptcy, you can still get relief from your creditors. When you file for bankruptcy, an automatic stay is placed on all collection activity, which means that your creditors can’t try to collect on your debt.
If you need legal advice on dealing with student loan payment, you can schedule a free consultation with our experienced Brandon bankruptcy attorney. Call our Florida law office today to experienced bankruptcy relief!
What are the Common Misconceptions about Student Loans?
There are a number of misconceptions about student loans and bankruptcy. Here are some of the most common ones:
1. Bankruptcy will automatically get rid of my student loan debt.
As we mentioned earlier, this is simply not true. In order to discharge your student loan debt in bankruptcy, you must prove that paying back your loans would cause you an undue hardship.
2. I can’t get relief from my student loan creditors if I can’t discharge my debt in bankruptcy.
This is also not true. Even if you can’t discharge your student loan debt in bankruptcy, you can still get relief from your creditors. When you file for bankruptcy, an automatic stay is placed on all collection activity, which means that your creditors can’t try to collect on your debt.
3. I won’t be able to get another loan if I discharge my student loans in bankruptcy.
This is not true either. You may be able to get another loan after you discharge your student loans in bankruptcy. However, the interest rate on the new loan may be higher than the interest rate on your original loan.
4. I won’t be able to buy a house if I discharge my student loans in bankruptcy.
This is also not true. You may be able to buy a house after you discharge your student loans in bankruptcy. However, the interest rate on the mortgage may be higher than the interest rate on your original loan.
5. I won’t be able to get a job if I discharge my student loans in bankruptcy.
This is not true. You may be able to get a job after you discharge your student loans in bankruptcy. However, the employer may perform a credit check and see that you’ve filed for bankruptcy.
Want relief? Contact The Golden Law Group today.
Talk with a board-certified Brandon bankruptcy attorney at The Golden Law Group if you are interested in more information. With the right attorney there to help you, you will be able to determine the best approach to handling your student loan debt.
Call the firm to get a board-certified bankruptcy law specialist on your side and receive a free, initial consultation! We have convenient locations in Tampa and Brandon.
Call our Experienced Student Loan Attorney Today!
Dealing with stressful debt collection? Federal loans got you worried? Student loan debt relief is just a phone call away. Golden Law Group has been helping Floridians experience financial independence! Along with student loans, our services include Chapter 7 bankruptcy, Chapter 13 monthly payment, wage garnishment defense, foreclosure defense, bankruptcy code, and many more!
Experience student loan relief today with the help of our skilled bankruptcy specialist! Student loan law is complicated. Allow us to help you!