Are you struggling to climb a mountain of student loans debt?
Are interest rates, late fees, and collection fees adding up with no end in sight? Do you owe more money now than when you started making payments? Are you kicking the can down the road to avoid paying now by using deferments, forbearance, or income-based repayments that are going to catch up with you at some point? You’re not alone. But don’t worry; you can get the student loan relief that you deserve. Student Loans Help – Call Today 312-858-3240
Let us clue you into a little known secret: student loans can be. That’s right, despite what anyone has told you, it is possible to have all or a portion of your student loans discharged in bankruptcy. The myth that student loans are not dischargeable is just that, a myth. The truth is, student loan relief is available.
Litigating Student Loans for People in Bankruptcy
How is it possible to discharge a student loan? In a word, litigation. It is that simple. Unfortunately, the problem is that almost no one, not even most bankruptcy lawyers, knows this simple truth. We do, and our knowledge sets us apart from most bankruptcy attorneys. We’re not a bankruptcy law firm, although we take people through the bankruptcy process and go a few steps further to improve their credit. As a consumer debt and credit litigation firm, we sue student loan companies in bankruptcy court to provide student loan relief for people who feel trapped and smothered by insurmountable debt.
How Much Can You Save In Student Loans?
It’s possible to have all of your student loans discharged through litigation in bankruptcy court. However, even if we can’t get all of your loans discharged, we may be able to get upwards of 50% of them discharged. For example, if you have $100,000 in student loans, we may be able to save you $50,000. And we will be there every step of the way. We will open up your bankruptcy case, or we will file the bankruptcy claim for you and litigate the case in bankruptcy court.
If you’re worried that our representation will be too costly to pursue student loan relief, let us put your mind at ease. We work on contingency, meaning if we can’t save you anything, you don’t pay anything. And that makes us incredibly motivated. If we succeed in getting all or some of your loans discharged, you will only have to pay 12% of the amount saved, which you can do in $300 per month payments. The real question is, can you afford not to let us help?
What Is The Ideal Student Loan Profile to Reduce Student Loan Debt?
If you decide to pursue student loan relief through bankruptcy, there are a couple of things you should know. First, both private and federal student loans are eligible to be discharged through bankruptcy. However, various other factors determine whether or not a person qualifies to have their student loans discharged. For example, if your loans aren’t that high compared to your income, or you just graduated from school, it is unlikely that you would be an appropriate candidate for student loan relief.
To litigate a student loan in bankruptcy court, we must either demonstrate that repaying your student loans would impose an “undue hardship” or that your “student loan” is a type of loan usually dischargeable in bankruptcy. To show an “undue hardship,” we must prove three things:
- A current inability to repay your student loans.
- A future inability to repay your student loans.
- A past good faith effort to repay your student loans.
Essentially, if you don’t have the money to repay your student loans now, you have an excellent chance of proving undue hardship and receiving a student loan discharge if:
- You do not anticipate a significant change in your financial circumstances; and
- You have worked to at least try to repay your student loans in the past by either making some payments or taking advantage of programs to defer payment such as deferment or forbearance.
It is also possible to discharge your student loans, in whole or part, if the student loan is:
- A private loan, and
- It was not used for an accredited school or was used for expenses above the cost of tuition.
While these aren’t as common, there are still plenty of them. Some examples are student loans solely for living expenses, loans for bar prep courses, loans for unaccredited schools such as coding boot camps, etc.
Student Loan Negotiation – the non-bankruptcy option
While litigating student loans in bankruptcy can result in the largest discharges, bankruptcy isn’t right for everyone. If your student loans are currently in default, negotiation may be an option for you, even if you haven’t, or can avoid, filing for bankruptcy. If you have federal student’s loans, you will have to wait until they move from your loan provider to a collection agency. However, if you have private loans, negotiating a settlement for a lower amount can become an option for you after you’ve missed six consecutive payments. If you are currently in default and/or have missed several consecutive payments, contact us to see if student loan negotiation is an option for you.
Drowning In Student Loan Debt? We Can Help
To sum things up, student loan relief is possible, even though every student is told at one point or another that their loans are not dischargeable or negotiable. Don’t let falsehoods and misconceptions keep you from living the life that you deserve. While you may feel destined to drown in student loans forever, never able to get your head above water, student loan relief is nearer than you think.
Suppose you’re serious about using bankruptcy as a tool to eliminate your student loans and other debt and completely change your financial future for the better. In that case, our bankruptcy attorneys at Chicago Consumer Law Center can help. Call us at (312) 858-3240 or complete the form to schedule your Free Strategy Session today.
Copyright© 2020. Chicago Consumer Law Center. All rights reserved.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
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