On behalf of Law Offices of Mark M. Kratter, LLC on June 05, 2013
Connecticut Bankruptcy Attorneys Helps Clients Determine Student Loan Options
Bankruptcy can allow people to wipe their financial slate clean when they are facing mounting bills, overwhelming payments, or steep mortgage installments that can no longer be paid – but it doesn’t always easily provide relief for those with large amounts of student loan debt. There are two major student loans: federal loans that are backed by the federal government, or private loans that are backed by for-profit banks. Private and government-issued or -protected loans have usually been non-dischargeable in bankruptcy proceedings. However, there are options. If student loans are weighing you down, contact the Bridgeport Bankruptcy Law Offices of Mark M. Kratter, LLC to help you figure out the process and begin anew.
Coping With The Burden Of Student Loans
Discharging a student load is a difficult process in which one must prove that repayment of the loan will create an “undue hardship” on the debtor and his or her family. The debtor must bring an adversary proceeding in the bankruptcy case to discharge a student loan in bankruptcy, and this proceeding includes the following:
- If you were forced to repay the loan, you could not maintain a minimal standard of living
- The financial hardship of repayment would continue for a large portion of the loan repayment process
- You made good-faith efforts to repay the loan before filing bankruptcy, usually over the course of a minimum of 5 years
Stopping Collection Action Through Chapter 13
Stopping collection action is possible by enrolling in a Chapter 13 payment plan. Chapter 13 helps you by allowing creditors to accept a reduced repayment plan over a period of three to five years once the plan is approved by the court. However, your debt won’t simply “disappear”: you will still owe whatever student loan debt remains when you complete your plan and interest will continue to accrue on your student loan during the term of your repayment plan. The skilled and expeirenced Bridgeport, CT bankruptcy lawyers at Mark M. Kratter, LLC can help guide you in dealing with student loans in a bankruptcy case, and show you what pitfalls to avoid.
Bankruptcy Attorneys Help Navigate The Student Loan Repayment Process
Repaying your student loans can be a source of stress. If you, like many other Americans, find that student loans are becoming too much of a financial burden, contact the Connecticut Bankruptcy Attorney Mark M. Kratter to discuss your options. Call today at 203-678-8135.