Student Loans Cannot Be Discharged in a Bankruptcy
Posted on Friday, June 27th, 2014 at 3:10 pm
Presently student loans are non-dischargeable in a bankruptcy and it doesn’t seem that Congress is likely to change this rule anytime soon. The only way to get rid of a student loan is by paying it off.
Types of Student Loans…
- Loans from the Federal Government – Loans from the federal government are typically low rate and the government is less likely to be aggressive when chasing debtors down for money.
- Student Loans from Private Lenders – Private lenders of student loans are in most cases aggressive in collecting debts. These lenders can be a real nightmare to deal with.
Students Need To Be Careful About Taking More Loans Than They Need
A lot of students take out large loans that cover all tuition, rent, and living expenses for a semester, when they could take out just enough to cover tuition and work to pay their rent and living expenses, which is the better idea. Also, students need to look at the average earnings for graduates with a given degree and compare that to the amount of tuition going into that degree to see whether it is even possible to pay the loan back. There are many degrees obtained from high priced institutions where it is almost mathematically impossible to pay the loans back.
Next Steps for Those With Large Amounts of Student Loans?
Since you can’t discharge student loan debt, you would be best to just pay them. Maybe you can cut expenses enough to make this happen. This is your best option. For those who just can’t handle their other debts to enable them to pay down their student loans; chapter 7 or chapter 13 bankruptcy may be an option.
Immediate Relief For Pressing Financial Problems
Above all, do not ignore your financial problems or lawsuits that creditors bring against you. These issues will not disappear. Your best option is to contact a bankruptcy attorney at the first sign of financial distress. Even if you are facing immediate foreclosure, repossession or wage garnishment, Lawrence & Associates can provide swift legal action to help protect you. Your start to a fresh financial future begins when you contact the bankruptcy law firm of Lawrence & Associates. Our firm helps clients file Chapter 7 bankruptcy and Chapter 13 bankruptcy. When you work with our firm, we will take the time to fully explain your legal options and the bankruptcy process in an understandable way — not with complex legal jargon. We can also provide advice on how to stop creditor harassment, garnishment, foreclosure and repossessions.
Providing You With Debt Relief Solutions Through Bankruptcy
Regardless of the reasons that brought you to financial distress, filing for bankruptcy does not make you a bad person. In fact, the government created bankruptcy in order to help people recover from unmanageable financial problems. At Lawrence & Associates, we help our clients understand how bankruptcy laws are made to protect them and will allow for a brighter financial future.
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Creditor Harassment
- Property Exemptions
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
If you or someone you know has large amounts of student loans that they are having a problem paying back, have them contact Lawrence & Associates today to see if we can help!
Contact Us (859.371.5997) for a Free Consultation
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