In America, student loan debt is becoming increasingly problematic. Most students take out loans to pursue higher education with the hope of acquiring a good job. With the high rate of increase in prices, most jobs that graduates obtain after college do not earn them enough to be able to service their loans and pay for other expenses. Overwhelming debts come when things are not as planned, such as huge medical expenses, job layoffs, or injuries.
You can consider bankruptcy if you are financially strapped and have incurred debts that you are unable to repay. This will help you eliminate a lot of consumer debts. Student loan debt cannot be eliminated during bankruptcy, as it is often believed. However, this may not always be the case. As an attorney in Sherman Oaks County, we can assist clients in obtaining relief from student loan debt or utilize resources to bring payments current.
Bankruptcy will allow you to have a fresh financial beginning by eliminating your other consumer debt, like medical and credit card debt.
We can assist you with your student loan debt!
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Why Hire Us?
It’s hard to discharge student loans through bankruptcy, and the law is complicated. You need to pick an attorney with the competence and experience to help you solve your debt. These are a few of the reasons I believe I’m your best option.
We have extensive experience and specialize in bankruptcy, student loan debt, and tax relief.
Our team is well aware of the intricacies of federal and State laws and will work with you closely to identify the best course of action for your case.
You will get personal guidance and attention. You will be able to meet me in person. Your case will be dealt with by me right from the start.
We understand that individuals in debt cannot afford high attorney fees, so we’ll charge our services at a reasonable rate and save you from making expensive mistakes, and provide you with a payment plan.
We are always here to answer all your questions and concerns throughout the entire process.
How Can We Help You?
- You can rely upon us to get started right away upon hiring.
- We will sit down and talk with you about your student loans and any other debts so that we can decide what option is best for you. Whether this involves bankruptcy or student loan options.
- Will review your assets and property to see whether you are able to claim exemptions to safeguard your property, as well as to see what happens to property that you can’t exempt.
- We will file all paperwork in a timely manner and appear in court as mandated by state and federal bankruptcy codes.
- We’re here to assist you with any questions you have and to make sure that you are doing everything that is required, including credit counseling.
The sooner you deal with your student loan problem, the better.
Call me to arrange a consultation. I have been assisting individuals to be debt-free for decades and can assist you whether you can or cannot discharge your student loan.
A Student Loan Attorney in Sherman Oaks, CA. Talks About Whether You Can File a Bankruptcy
Student loans, in most instances, can’t be discharged in bankruptcy in California. But in a few instances, they can, and you won’t find relief until you attempt it. A study in the American Bankruptcy Law Journal discovered that just 0.1% of student loan debtors have tried to discharge their loans. But judges did grant a discharge for almost 40% of those who applied and could demonstrate that paying back these loans would impose an “undue burden.”
As per the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, student loans used to finance enrollment fees can be discharged only if repayment “will impose undue burden on you and your dependents”. As the term “undue” hardship is not defined by the bankruptcy code, it is interpreted differently in different jurisdictions.
Most courts of bankruptcy employ the Brunner test to demonstrate that undue hardship has been achieved. The Brunner test was named after the court case that set this measure (Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987).
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A Brunner Test
The Brunner test is a three-question test to assess whether or not you are able to pay for your student loans:
- Would you and any dependents be likely to have a minimum standard of living based on your current income and expenditure if you were compelled to repay your loan?
- Do any other exceptional circumstances exist that suggest that the state will probably continue for a significant period of the repayment period?
- Have you tried to repay your student loans in good faith?
This test can be applied to all federal, state, or local government-guaranteed or subsidized student loans, as well as private student loans that are solely for educational purposes. These regulations do not apply to mere tuition or educational debts that are not loans, and which did not entail the transfer of funds with an undertaking to repay.
You can cancel your student loan if you can demonstrate that it is resulting in undue hardship. Even if you are unable to demonstrate an undue burden, filing for bankruptcy will assist in getting rid of much of your qualifying debts, so student loan debt is more manageable to pay back.
Bankruptcy filing also shields you from collection activity until your case of bankruptcy is resolved or until the courts give the creditor permission to start collecting against your debts.
How to Establish Undue Hardship in a Student Loan Lawsuit?
If you file for bankruptcy whether your student loans get discharged due to hardship is not decided. If you want your student loans to be cancelled, we can bring an action, “adversary proceedings,” in Bankruptcy Court against your student loan lenders and/or the government. The court will make a ruling. We would request the court to rule that payment of the student loan would result in undue hardship, and present facts to substantiate this.
In substantiating my case, we will need to:
- Look over your own financial situation, as well as any debts or payments you might have.
- Gather supporting documents, like education, health, work, and financial information.
- You and your witnesses must give evidence to establish that you have been treated unjustly and in good faith.
If you are drowning in debt and are unsure if your student loans are dischargeable, bankruptcy may be the way to start fresh. If you have previously filed for bankruptcy and did not request a determination of an undue burden, we can file to reopen the case.
Answers to Common Questions About Student Loans and Debt
You will have a lot of questions when handling student loans and other debt. You can pose these questions to me during your initial consultation. But to give you a head start, here are some of the most frequently asked questions I receive.
Can a Student Loan Lawyer Help You with Your Case?
Yes, for individuals who are having trouble paying off student loans or other debt. When you see us, we will review your financial situation, considering your income, debts, and objectives. Then, inform you of your choices. This could be negotiating with the loan company to get better terms or consolidating the student loans so that you can get back on track with payments.
Our years of experience in assisting individuals to escape debt will enable us to develop a plan that suits you, whether you can discharge your student loan or not.
Don’t allow financial difficulties to become part of the divorce issues—talk to an expert lawyer today at Bruner Wright PA so you may make the wisest decisions regarding your future.
Consult with experienced lawyers at Bruner Wright PA to safeguard you. Reach out today to an experienced bankruptcy lawyer regarding the best solution for your case.
In a Hurry? Dial +18-503-850-342 Now!