Phoenix Student Loan Bankruptcy Attorneys Helping You Squash Your Education Debt
There are few things as fiercely despised in America as federal student loans. Student loans linger years after you are handed a diploma and affect your entire life. Depending on the school you attended and the degree program you went through, your student loan debt may be astronomical. Because employment is not guaranteed after earning your degree, you may experience incredible financial distress after graduating. Student loan debt on top of your other debts and living expenses can balloon and put you in a difficult spot. If your student loans have brought you or a loved one undue hardship, you may be considering bankruptcy as an option. Bankruptcy can be a lifesaver after you have expended all other avenues.
However, discharging student loans in bankruptcy can prove to be difficult. In many cases, discharging student loans does not get approved by bankruptcy courts but that doesn’t mean it cannot happen. To increase your chances of getting your student loans wiped off, along with other outstanding debts, you should consult with a bankruptcy attorney experienced in bankruptcy cases involving student loans. Money may be an issue for you, therefore paying an attorney to help you through your bankruptcy may not seem ideal, but zero-down bankruptcy plans are available for those who qualify, allowing you the flexibility to pursue a fair bankruptcy case in court.
Should I File For Bankruptcy if I Can’t Afford My Student Loan Payments?
When you are buried under the financial stress of student loans and other debts, it is hard to see the greener grass on the other side. Monthly student loan payments can be incredibly costly. These payments can add up and really affect you financially. Filing for bankruptcy might be your initial impulse and for good reason. Bankruptcy can allow you to start fresh and put your financial hardships behind you. However, it is always important to weigh all the options you have before setting your mind to a single idea.
This is where a bankruptcy lawyer can help you decide what would benefit you more. Bankruptcy may be advisable if several dependent factors are on your side. A knowledgeable bankruptcy attorney in Phoenix can be your compass as you navigate these new waters. When consulting a bankruptcy lawyer, be sure to ask about the zero-down bankruptcy option that allows you wiggle room to obtain legal counsel if you are tight on money.
How Do I Prove My Student Loans Cause Me Undue Hardship?
Undue hardship, the primary factor in discharging your student loan debt, can be tricky to prove to a bankruptcy court. Undue hardship measures how much your student loan debt is affecting your life, however, there are no clear cut definitions of how that is calculated. The way most bankruptcy courts calculate undue hardship is through something called the Brunner Test.
While taking this test might make you feel like you are back in college, it’s important to measure three specific things about your situation.
The first is measuring whether or not you can maintain a minimal standard of living if you are forced to continue to pay your loans. The second thing the Brunner Test measures is whether your financial situation will remain the same for a fair amount of time. And finally, the Brunner Test details whether you have at least made a solid attempt at paying your student loans. The concept of the Brunner Test may be puzzling but it is one that an experienced lawyer can explain to you and help you gauge your chances on how you would stack up if you took the test.
Should I File For Chapter 7 or Chapter 13 Bankruptcy to Get Rid of My Student Loans?
Determining whether you should file for Chapter 7 bankruptcy or Chapter 13 bankruptcy depends on several factors but mostly on whether you are receiving a steady income. If so, Chapter 13 would be a likelier bet. This can benefit you because you wouldn’t have to get rid of any property you owned. If you don’t make a steady income, you are likelier to file Chapter 7. Student loan borrowers may have a harder time getting their student loan debt discharged through Chapter 13 but every situation is different. Reach out to a bankruptcy attorney to clarify which option would be better for you.
Can a Bankruptcy Lawyer Help Me Remove My Student Debt?
Who knew college could end up being so costly in the end? While the Department of Education does the best it can in providing most students an opportunity to get an education, the costs can really put people in a bind as time goes on. The monthly payment for student loans can get obscenely high if you allow interest to pile up. If you are contemplating filing for bankruptcy to discharge your student loans, you should contact an experienced law firm like Israel & Gerity, PLLC. Student loan debt can be a burden unlike any other but the accomplished lawyers at Israel & Gerity, PLLC will do whatever it takes to help you alleviate your financial burdens. Call Israel & Gerity, PLLC at 602-274-4400 to schedule a no-hassle, free consultation today.