For individuals considering filing for bankruptcy, having student loans can make the process significantly trickier. Failing to pay back federal student loans could result in wage garnishment or the seizing of bank accounts without the typical court proceedings. Thankfully, there are repayment programs available to help manage the debt.
Unlike credit card debt, discharging student loan debt can be difficult. Current laws require that debtors must be able to prove that paying that their loans would cause “undue hardship”. This stipulation comes with several requirements that must be met, including but not limited to proving that the debtor made a good faith effort to repay the loans, through actions such as consolidation or making an effort to boost income.
The court does have the power to partially discharge student loans if the debtor can show that he or she can pay some, but not all of the debt. But again, there are strict requirements that must be met. Hence, it’s a good idea to speak with your student loan lender and discuss repayment options. A bankruptcy filing will not guarantee you will be student loan free.
This information is provided by Miami bankruptcy lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with a Miami insurance attorney or bankruptcy attorney and receive a free consultation. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.