It’s not uncommon for a college student to graduate with a sizeable amount of student loan debt. From a few thousand dollars to tens of thousands, these debts aren’t always easy to pay back, especially if you can’t find work in your intended field. Add in a serious illness, a mortgage, a car loan, and perhaps even the loss of employment, and it’s not difficult to see why some people look to bankruptcy for relief from their debt. That said, if you’re in debt, you can turn to a dedicated Louisville student loan debt relief lawyer from our legal team to help you through the process ahead.
At Schwartz Bankruptcy Law Center, we get asked all the time if it’s possible to discharge student loans in bankruptcy. Unfortunately, there are a lot of myths surrounding bankruptcy, including the idea that this is a debt you can discharge. In most cases, it is extremely difficult — if not impossible — to discharge student loan debt in any form of bankruptcy.
Even though it may be difficult or impossible, we still understand that you want a fresh start, and we want to help you achieve this. When you talk to a Louisville, Kentucky debt relief lawyer from our firm, we discuss your bankruptcy options and explain what debt can and cannot be discharged in each situation. We then offer guidance that will help you learn to better manage your student loan debt confidently and successfully.
When you file for Chapter 13 bankruptcy, the repayment of your loan goes into administrative forbearance, meaning you do not have to make payments during the time your case is active, which in most Chapter 13 cases is five years. This means that collection, including wage garnishment, must cease during the time of your Chapter 13 plan. This gives you time to reorganize your finances and eliminate other debts.
Because administrative forbearance only lasts for a small amount of time, those in debt need to work quickly with a qualified bankruptcy lawyer to determine the next steps. At Schwartz Bankruptcy Law Center, a Chapter 13 bankruptcy attorney from our firm will walk you through the bankruptcy process and make sure creditors honor administrative forbearance. We also help you make smart decisions about your debt and explain how to move on with your life.
At Schwartz Bankruptcy Law Center, we offer solutions that help you manage your financial situation and get out of debt. If you’d like to learn more about your options or how our firm can help you, contact us online today. We are on your side, and we will do everything in our power to get you into a more comfortable financial position.