Claim Financial Freedom Even With Student Loan Debt
The legal team at Rock Law Firm is passionate about helping the residents of Tempe and the greater Phoenix area find relief from their debt, including soaring student loan balances. We can help you overcome the barriers that make discharging student loans difficult. Our law firm offers free consultations and zero-down filing so you've got nothing to lose except those past-due notices. We use our experience to guide you through the complex bankruptcy process to optimize the outcome. Using the rock of justice, we can offer you financial freedom. Contact Rock Law Firm to schedule your consultation now!
What We Assist With:
- Debt Relief Option Evaluation
- Bankruptcy Alternative Option
- Chapter 7 Bankruptcy Filing
- Chapter 13 Bankruptcy Filing
- Student Loan Adversary Proceeding Filing
- Providing Brunner Test Evidence
Student loan debt has soared to an average of nearly $40,000 for the average university student and much higher for those who lived on campus, didn't work during school, attended a specialized program or attained a higher-level degree. Some have student loan debts over $100,000. While you are a student, this may not seem like a lot, and many people believe that the job their degree will entitle them to will make it easy to pay the debt back. While you are a student, many student loans are not accruing interest, nor are payments due to pay down the balance. This affords you the opportunity to focus on your education. However, upon graduation, many students begin receiving notice of payment due averaging in amounts from $400 to upward of $800 each month. If you are like most Americans, this is equivalent to a second car payment or mortgage payment.
Student loan debt tops the list for reasons people suffer from financial distress and begin to default on various bill payments.
Taking Back Your Life
There are several ways you can go about overcoming the burdens of student loan debt. Consolidation loans allow you to package all of your student loans into a single monthly payment and renegotiate interest rates and repayment schedules. Student loan forgiveness plans allow you to have qualifying loans erased once you pay on them for a full 10 years. Many student loan lenders authorize forbearance in payments for those experiencing financial hardships. Income-driven payment plans work with your income to dictate a monthly payment you can afford.
While these are all great options for managing the here answer now, it does little to reduce or eliminate the debt. In fact, not paying or paying very little can actually make your debt continue to accumulate as interest collects on a higher balance, and small monthly payments don't even touch the principal.
Stop Wage Garnishment
Student loan default is one type of debt that does not require the lender to take the case to court and have a judgment issued before garnishing your wages. If you have fallen behind without negotiating a repayment plan with your student loan lender, they are able to come after your paycheck at the source.
There is a common misconception that student loans are not eligible for discharge during bankruptcy, but that is false information. It is true that only about 37% of bankruptcy cases authorize the discharge of student loan debt, however, there are many factors at play.
Discharge Student Loan Debt in Your Bankruptcy
Requesting discharge of student loan debt during bankruptcy requires additional steps and filing in the bankruptcy process. Once you have filed for bankruptcy, you'll need to file an additional lawsuit called an adversary proceeding. This additional step requires you to file a written complaint outlining how your student loan debt presents a specific financial hardship. The Brunner test is used to verify the undue hardship that student loan debt may be causing you and help support your case to discharge the debt. The Brunner test requires you to prove three things:
Making student loan payments would prevent you from maintaining the minimum standard of living.
Your circumstances make it unlikely that you will be able to repay your student loan debt anytime over the repayment period.
You have made "good faith" attempts to repay what you owe.
An experienced bankruptcy attorney can assist you in collecting the necessary documents and plead your case. When you file for bankruptcy with an adversary proceeding, you may have some, all, or none of your student loan debt discharged. With the help of aggressive legal counsel, you've got a fighting chance.
How Bankruptcy Can Help
When you file for bankruptcy, it initiates an “automatic stay,” which halts collection attempts and prevents wage garnishment. Filing a Chapter 7 bankruptcy allows you to eliminate certain debts and affords you the opportunity to use property or other assets to pay down debts that do not qualify for discharge. Filing a Chapter 13 bankruptcy allows you to negotiate realistic repayment terms to make good on debts and settle for less than your original amount.
Don’t let overwhelming student loan debt prevent you from living your best life. Partner with Tempe’s rock of justice. At Rock Law Firm, our bankruptcy attorney offers the guidance you need to get the best outcome, coupled with zero-down filing. Contact us for your complimentary consultation today!