Not all student loans can be eliminated through bankruptcy proceedings. Students usually take on loans thinking a job after graduation is a sure thing. If someone remains in debt years later and still cannot pay them off, a Jacksonville FL Bankruptcy Attorney can be available to help.
Student loans are guaranteed by the government and must always be repaid. It does not matter how long the loan has been outstanding. There is only one situation that will facilitate forgiveness of a student loan.
If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.
In an undue hardship case the petitioner must not be paying for a cell phone, internet access or cable television. He must be able to show that he is unlikely to increase his earning power. Therefore, his low income will make it impossible for him to buy the necessities of life and also make loan payments.
His lawyer will file the required paperwork in federal court to seek an undue hardship status. This can be done in a chapter seven only because it discharges debt completely. A chapter thirteen, on the other hand, allows the petitioner to pay off his bills over a period of time.
The client must be earning enough money to pay living expenses and have enough left over to make payments on outstanding debt. From the time his petition is accepted by the court, there will be no more interest added to his debt. The time allowed for repayment is usually five years.
An attorney may offer a free consultation to determine the client's options. If he is, a petition is filed in the federal court. There are filing fees to pay. There will also be court costs for administering the payment schedule and attorneys fees to be paid.
Student loans are guaranteed by the government and must always be repaid. It does not matter how long the loan has been outstanding. There is only one situation that will facilitate forgiveness of a student loan.
If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.
In an undue hardship case the petitioner must not be paying for a cell phone, internet access or cable television. He must be able to show that he is unlikely to increase his earning power. Therefore, his low income will make it impossible for him to buy the necessities of life and also make loan payments.
His lawyer will file the required paperwork in federal court to seek an undue hardship status. This can be done in a chapter seven only because it discharges debt completely. A chapter thirteen, on the other hand, allows the petitioner to pay off his bills over a period of time.
The client must be earning enough money to pay living expenses and have enough left over to make payments on outstanding debt. From the time his petition is accepted by the court, there will be no more interest added to his debt. The time allowed for repayment is usually five years.
An attorney may offer a free consultation to determine the client's options. If he is, a petition is filed in the federal court. There are filing fees to pay. There will also be court costs for administering the payment schedule and attorneys fees to be paid.
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