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.
It is usually not possible to discharge student loans as you would be able to discharge a bill owed to a credit card company. It is owed to the government and is inviolable. There is, however, one circumstance that will allow you to discharge the student loan.
That is in a case of undue hardship. This term is defined as a situation in which a person does not have sufficient income to support himself and any dependents. Monthly expenses leave no room to make loan payments. There must be solid proof of this state of affairs.
When claiming undue hardship, the individual may not be paying for cable television, internet service or even a cell phone. Proof must be provided that income level is not likely to go up in the near future. It is only applicable if loan payments would prevent the client from paying rent or buying groceries.
An attorney must petition the federal court for a hardship discharge. This is applicable in a chapter seven bankruptcy proceeding in which all debt is discharged. Unlike the chapter seven, the chapter thirteen offers the petitioner a chance to pay off all debt.
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.
It is usually not possible to discharge student loans as you would be able to discharge a bill owed to a credit card company. It is owed to the government and is inviolable. There is, however, one circumstance that will allow you to discharge the student loan.
That is in a case of undue hardship. This term is defined as a situation in which a person does not have sufficient income to support himself and any dependents. Monthly expenses leave no room to make loan payments. There must be solid proof of this state of affairs.
When claiming undue hardship, the individual may not be paying for cable television, internet service or even a cell phone. Proof must be provided that income level is not likely to go up in the near future. It is only applicable if loan payments would prevent the client from paying rent or buying groceries.
An attorney must petition the federal court for a hardship discharge. This is applicable in a chapter seven bankruptcy proceeding in which all debt is discharged. Unlike the chapter seven, the chapter thirteen offers the petitioner a chance to pay off all debt.
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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