Last year at around this time, there was a lot of noise in the media about the student loan crisis. The alarm was set by deadline to double student loan rates across the board to 6.8%. All student loan rates are set to double on July 1st if there is no agreement to change the situation.
So, why is this a crisis? Defaults on student loans can be considered a crisis due to the amount of student loan debt that exists out there. Outstanding student loan debt is up to 1 trillion in the US. Student loan debt has quadrupled since 2003. It has has surpassed auto loans and credit card debt. The sharp shift of debt to student loans happened recently within the past 5 years. Student loans are a serious issue on the table of many of our policy leaders. We can question how this significant increase occurred and how it can be adjusted for in the future, but no policy change is going to get you out of your loans automatically. You need to be proactive in finding a solution. There are many options to negotiate with your student loan lender.
As we have reviewed several times on this site before, the ability to discharge student loans within a bankruptcy is very limited. Technically, it is definitely possible to discharge student loan debt within a bankruptcy. Bankruptcy code allows the discharge of student loan debt under undue hardship. The underlying problem is in the definition of undue hardship. It has been consistently translated as a condition where the bankruptcy filer has no ability to work due to personal conditions, usually medical conditions or disability. So, when an attorney tells you that a student loan is absolutely not able to be discharged in bankruptcy, you can now argue that this is not the case! Bankruptcy code does not actually disallow the discharge of student loan debt, but it does apply a condition that is very difficult to meet.
What can Bankruptcy Law Professionals do to help you with student loan debt? As a debt relief organization and bankruptcy law firm, we have all the tools you need to complete your bankruptcy filing or negotiate your student loans. We can seek forbearance, deferment, consolidation, and discharge for student loans. Whether your loan is public or private, Bankruptcy Law Professionals will negotiate with your lender to provide you with additional options in managing your student loan debt.
Bankruptcy Law Professionals has offices in Orange County, Inland Empire, and Los Angeles County. Bankruptcy Law Pros has our attorneys ready to meet with you and provide you with a free consultation at any of our offices. Our Riverside bankruptcy attorneys and Orange County bankruptcy attorneys have extensive experience in their respective regions. It is key to be as familiar with the court system and the bankruptcy trustees as possible. We are meeting with court appointed bankruptcy trustees on a daily basis. Our experience in OC and Inland Empire is as current as you can get.
Please take advantage of our free consultations by contacting us at (855) 257-7671. We can be reached at anytime. We look forward to hearing from you.