Most people are aware by now that Student Loans are generally not dischargeable in Bankruptcy. I could discuss for hours what a disaster this has been to the overall cost of education, but this is not the forum for that. As a Baltimore Student Loan Lawyer and Bankruptcy Attorney, one of my jobs is to help people get out of debt, and quite frequently a major part of that debt problem are student loans.
What can a Baltimore Student Loan Lawyer do?
Well, for one, we do more than Bankruptcy. We call ourselves Baltimore Bankruptcy Attorneys, but really, we’re counselors first. When Bankruptcy is the right method that is what we suggest. Sometimes, though, Bankruptcy doesn’t help at all. Sometimes it’s only part of the solution. Sometimes it’s the whole solution.
When to File for Bankruptcy?
The test for when Bankruptcy can discharge a student loan is a tough test to pass and of course the opposition from student loan creditors can often make the cost untenable for many people crushed under the weight of student loans. The first leg of the test is simple to understand, hard to prove:
Can you maintain a minimal standard of living if forced to repay student loans? If the answer is no, you can move to leg 2. Will these financial conditions continue for the greater part of your repayment period? Asked another way, is there a chance you will be able to afford a minimal standard of living and your student loans in the future? If the answer is again no, let’s move to the third segment. Have you tried? Have you really made an effort to repay your loans? Have you explored all repayment options available and still found the same result? If the answer is yes, then you’ve got a shot.
If we file for Bankruptcy, can my Baltimore Student Loan Lawyer negotiate a settlement?
Actually, yes. Oftentimes this is the most cost effective relief you can receive when filing for Bankruptcy on your student loans. With very rare exceptions, student loan servicers will always fight to defend their collection rights against a bankruptcy discharge, but they have a bottom line as well and if you have a reasonable chance of success they will often negotiate partial loan forgiveness to avoid further litigation of the matter.