Student loans are not ordinarily forgiven in bankruptcy cases. The student may have the best intentions to repay. However, he may not find a job that pays as well as expected. If they are still unpaid years later, a Jacksonville FL Bankruptcy Attorney might be able to offer a solution.
Student loans are guaranteed by the government and must always be repaid. It does not matter how long the loan has been outstanding. There is only one situation that will facilitate forgiveness of a student loan.
That is if paying them off will cause what is called undue hardship. This hardship exists if someone does not earn enough to support himself and his dependents, if he has them. This will leave no money to pay off the loans. It must be proven to the court.
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.
His lawyer will file the required paperwork in federal court to seek an undue hardship status. This can be done in a chapter seven only because it discharges debt completely. A chapter thirteen, on the other hand, allows the petitioner to pay off his bills over a period of time.
The Chapter 13 petitioner must be earning a sufficiently high income. It must enable him to afford living expenses plus make the required loan payments. All interest on the debt will cease for the duration as soon as the court proceedings are finished. He is usually given five years to repay all debt.
The client may schedule a consultation with a lawyer to analyze available options. If he is eligible, the lawyer will file papers in federal court. There are fees for filing, attorney fees and court administration charges. Usually he is given five years to make all the payments required.
Student loans are guaranteed by the government and must always be repaid. It does not matter how long the loan has been outstanding. There is only one situation that will facilitate forgiveness of a student loan.
That is if paying them off will cause what is called undue hardship. This hardship exists if someone does not earn enough to support himself and his dependents, if he has them. This will leave no money to pay off the loans. It must be proven to the court.
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.
His lawyer will file the required paperwork in federal court to seek an undue hardship status. This can be done in a chapter seven only because it discharges debt completely. A chapter thirteen, on the other hand, allows the petitioner to pay off his bills over a period of time.
The Chapter 13 petitioner must be earning a sufficiently high income. It must enable him to afford living expenses plus make the required loan payments. All interest on the debt will cease for the duration as soon as the court proceedings are finished. He is usually given five years to repay all debt.
The client may schedule a consultation with a lawyer to analyze available options. If he is eligible, the lawyer will file papers in federal court. There are fees for filing, attorney fees and court administration charges. Usually he is given five years to make all the payments required.
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