Avoiding student loan and filing for bankruptcy
Filing for bankruptcy can be a tough decision, especially if your debts are coming from student loans. With the federal law on the new bankruptcy code, the student loan debt may or may not qualify for discharge. Sometimes finding the right bankruptcy attorney to offer law advice can be beneficial to your case if you are not sure what debts have a chance to be relieved.
The bankruptcy law
Student loans may have other qualifications in a bankruptcy. Generally, if your student loan came from the government, then it may need to be paid without a bankruptcy.
You might have the opportunity to include these debts if you can prove to the court that it would cause undue hardship on your financial stability if you were obligated to take care of them.
Sometimes you might feel that your debts are overwhelming and you are may not be sure of your options. In these cases, you can turn to a bankruptcy lawyer to provide you with various methods of dealing with your debts.
The bankruptcy court
Some people may have student debts that are owed to a bank or financial institution. If this is the case, then you may be able to file for hardship petition with the bankruptcy court.
It may help you to show evidence that you have made an effort to pay back your debts. This can include receipts or any forms of communication with creditors.
Most likely, you may have to prove to the court that you are unable to pay your student loans and that you are keeping up a minimal standard lifestyle.
What you can say at bankruptcy court
At your discretion, there might be some points to bring up in court that could help you case. You may want to prove that if you were forced to pay your student loans at this time that you have no way of finding a solution to the issue.
If you have a job, then it may be less convincing to the court that you are in a pressing circumstance. This may be regardless if the job does not pay well.
Sometimes debtors will purposely seek low-paying employment to create the facade that they are struggling. However, the court may not be persuaded if this is the case, unless you can show that there were extraneous components out of your control.
The decision to file for bankruptcy
It can be advised to think carefully before filing for bankruptcy. Having this on your record can destroy your credit rating and may last up to ten years on your record. It might be a good idea to seek legal advice and possibly look to other methods of dealing with your debt before resorting to a bankruptcy.