Posted on Thursday, November 6th, 2014 at 4:57 pm
There are many reasons that individuals and families find they can no longer afford to pay monthly bills. Some may have recently gone through a divorce or been saddled with overwhelming medical bills. Others have been injured at work or in an accident and are unable to earn an income. Many are facing increased interest rates on mortgages or credit cards and cannot keep up. There are also people who simply let spending get out of control and cannot find a way out. We want to share a recent case we handled to give you an idea of what we can do for our clients. We will supply as many details as possible while still respecting our clients need for privacy.
Our client from Erlanger, Kentucky contacted us to file bankruptcy because of her student loans. Her student loans were in default and she was getting hounded day and night by the lender. She knew that student loans were not dischargeable in bankruptcy, and she didn’t know what to do.
What We Did
Lawrence & Associates analyzed our clients debt and realized that her student loans were the only non-dischargeable debt. We further realized that she could pay the student loans off within five years with reasonable monthly payments so long as her other, dischargeable debts did not continue eating into her monthly disposable income. We filed two bankruptcies for our client, the first was a Chapter 7 that discharged her medical bills, credit card debts, and payday loans. The second was a Chapter 13 filed after the Chapter 7. In the Chapter 13, the only debt was the student loan and we forced the student loan lender to accept a repayment schedule that lasted five years. While in the bankruptcy, our client could not be hassled by the student loan lender so long as she made her monthly payments.
Our client is currently paying off her student loans and is otherwise debt free! If you or someone you know is struggling financially, give us a call. We’re here to help. Lawrence & Associates Bankruptcy office is located in Fort Mitchell, KY.
Contact Us (859.371.5997) for a Free Consultation