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.
If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.
You cannot pay for internet service, cable television or cell phone service. The court also requires proof that your financial situation is unlikely to get better in the near future. Therefore, making loan payments will continue to keep you from buying the absolute necessities of life for you and any dependents.
If the client qualifies, his lawyer has to file a petition in federal court. A hardship discharge only applies in a chapter seven petition. The chapter thirteen is when the client wants to eventually repay all the money he owes.
The client must be earning enough money to pay living expenses and have enough left over to make payments on outstanding debt. From the time his petition is accepted by the court, there will be no more interest added to his debt. The time allowed for repayment is usually five years.
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.
If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.
You cannot pay for internet service, cable television or cell phone service. The court also requires proof that your financial situation is unlikely to get better in the near future. Therefore, making loan payments will continue to keep you from buying the absolute necessities of life for you and any dependents.
If the client qualifies, his lawyer has to file a petition in federal court. A hardship discharge only applies in a chapter seven petition. The chapter thirteen is when the client wants to eventually repay all the money he owes.
The client must be earning enough money to pay living expenses and have enough left over to make payments on outstanding debt. From the time his petition is accepted by the court, there will be no more interest added to his debt. The time allowed for repayment is usually five years.
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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