Help With Student Loans!
What About Student Loans?
Can Filing Bankruptcy Get Rid Of Student Loans?
The answer is simple: No...with one limited exception. It used to be that you could file bankruptcy and get rid of certain student loans. Well....not any more.....not since 1998 when the law was changed.
The idea is this: The government makes it easy to get student loans. Normally...when you get a loan or credit from a bank or credit union....there are certain hoops you have to jump through...to make sure it looks like you can pay back your loans and to protect these lenders in case you don't. Not so with student loans.
The government designed the student loan laws to make it easy for almost anyone to get student loans. Why? To encourage people....just like you....to stay in school and get educated. The price you pay is this. Getting rid of student loans is tough....if not impossible.
What Is That Limited Exception?
Section 523(a)(8) of Title 11 of the United States Code provides that student loans are not dischargeable except where the student loans "impose and undue hardship" on you. Sounds good...right? I mean it's always a hardship to pay back something when you don't have the money...right? But....don't be fooled. That's not what "hardship" means.....at least not according to the Courts.
Basically, to qualify for a "hardship" discharge of your student loans, you have to prove that you will not ever be able to pay back your student loans. Basically, most Courts have held that this means that you are stuck with your student loans unless you can prove that you are permanently and totally disabled from ever working for the rest of your life.
Sounds harsh...doesn't it? But that's the way it is.
So....Can Bankruptcy Do Anything For Me?
Absolutely. Let's face it....the people collecting on overdue student loans can be ruthless. You know this....if you are behind in paying back student loans. Bill Collectors can make life very uncomfortable for you and for your loved ones. It's hard to focus on a new career, when the nasty calls and threats keep coming. Many times, they can even garnish your wages....and this is in addition to the frustration you feel from answering all the nasty calls.
Filing bankruptcy can't get rid of student loans. That's the bad news. It can't even stop the interest from accruing...but it can do this. Filing bankruptcy can put the student loan people under control for up to 5 years and this can give you some breathing room and a chance to work into a better job or better pay.....so that you are in a better position ...financially.... to pay your student loans and....a better frame of mind to deal with them. During that time...no one can contact you regarding these past due student loans. That's a relief!
What about getting new student loans?
If you are in "default" on your student loans...you most likely will not get another student loan. If you are in default....and have tried to get more student loans...you probably already know this. That is the key....whether or not you are in "default".
If you are not in default....and if you can qualify for more student loans....you can still get more student loans....even if you have filed bankruptcy. Section 525 of Title 11 of the United States Code makes it illegal for you to be denied a student loan just because you have filed bankruptcy. This is powerful.
So...What Should I Do?
Your first order of priority is to discuss your situation with an experienced professional that deals with this type of situation on a daily basis. You need to talk with a professional that can protect you and who has the answers that you need.... to move on and past this negative time in life.
The Law Offices of West & Associates has handled thousands of similar situation for people just like you. We know exactly what to do and how to do it. We can use Federal Laws to get you fast protection.
There is only one big problem! We can't help you, if we don't know you. You need to call us for a FREE Confidential appointment. Things will not get any better by themselves. Come on in and talk to us.