Back when you were applying to colleges, tuition wasn’t a major factor. Guidance counselors and advisors alike would tell you to go to the college that had the best program for your major – regardless of the price tag. They would advise students to work hard to obtain scholarships and to take out student loans to cover the difference. Because after all, once college was finished, you’d find a well-paying job and school loans would be a thing of the past. Yet as life goes, idealistic plans don’t always work out.
Fort Worth Bankruptcy Lawyers – Assisting with Student Loan DebtWith the unfortunate state of the economy, many who have graduated in the past few years found themselves with no income for longer than anticipated. Instead of buckling down at a well-paying job to tackle increasing student loans, many found themselves with no prospects of employment, or only a part-time or underpaid position outside of their field. Despite jobs disappearing, these student loans didn’t – leaving many with less than they ever had before and seemingly no way to escape.
What do you do when you feel as if you’re in an eternal hole with student loans?
If you feel like you’ll never be able to escape this burden, then it’s time to consider other options – such as bankruptcy. It must be said that student loans are extremely difficult to discharge in bankruptcy; however, there are ways. In order to discharge your student loans through bankruptcy, you must show that paying these debts will impose a monumental hardship on not only you, but your dependents as well.
So how exactly does a court decide what an “undue hardship” is? Generally they will use a test called the Brunner test. This is based on three standards and will assist with the court’s determination of whether or not bankruptcy is a valid option. If an “undue hardship” can be proved in your favor Discharge Student Loan Debt with Bankruptcy Attorneys in Fort Worth, your student loans will be completely voided. That means no longer will you face additional financial stress from the monthly burden of your education. In addition, filing for bankruptcy will automatically protect you from collection agencies – either until the case is resolved or the creditor receives court permission. If you are unable to prove “undue hardship” ask your attorney for other alternatives, such as a Chapter 13 bankruptcy plan.
If you feel suffocated by student loans and believe there is no way out without causing hardship, bankruptcy may prove to be an effective option for you. Make sure that you must consult with an attorney to review your options prior to making a decision. After all, bankruptcy may stay on your credit history for up to 10 years, and the costs for filing can be significant. There are also limits to how frequently you can file for bankruptcy.
Before taking any type of legal action, schedule an appointment with a Fort Worth Bankruptcy Lawyer to learn all of your options.