Can I File For Bankruptcy On Student Loans?

Student loans have been causing problems since before I was born, and they continue to do so today. Whether it’s public or private student loans, bankruptcy is not something students need to fear. In fact, having a bankruptcy will actually make it easier for you to get back on track with your finances and get out of debt – if that’s what you want. There is no shame in filing for bankruptcy. If you’re struggling with student loan payments, there are plenty of options available to help you stay on top without resorting to bankruptcy. Here are some of those options.

Consolidate Your Debt

Consolidating your debts will allow you to pay off smaller amounts instead of making larger monthly payments towards multiple creditors. You may even qualify for lower interest rates if you consolidate your debt. A credit counseling agency can assist you with consolidation.

Pay Off Your Debt Before Graduating

Take time to graduate and then work full-time before paying off any remaining balance. Once graduated, you’ll find yourself with a little extra money each month and will be able to save enough to cover your expenses while still paying down your debt.

Hire Someone To Do Your Taxes

It is possible to file taxes without assistance, however, tax preparation services exist specifically to help people who cannot afford to hire someone else. Look for services located near your school for convenience.

Apply For Public Assistance Programs

Depending on your circumstances, you might qualify for government assistance programs. These programs are administered through local social service agencies and are designed to provide financial aid to people who meet certain income guidelines.

Borrow From Family & Friends

Ask friends and family members for help repaying your student loans. Not only will they probably be willing to lend you the money, but you’ll likely feel much closer to them after doing so.

Pay Yourself First

Set aside a portion of your paycheck to repay your debts before spending anything else. By setting aside money for repayment at first, you will be less likely to spend your money frivolously and miss out on opportunities to invest in a home, car, or other big purchases.

Don’t Fall Behind! Set Up Automatic Payments

Can I File For Bankruptcy On Student Loans?

This video walks you through the basics of bankruptcy law.

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Can I File For Bankruptcy On Student Loans?

How To file for bankruptcy on student loans make sure to do that before they take away you know your bank account fund that would suck i mean if you have kids you need money on hand what if you get sick how are you going to pay for medicare or anything i mean you need to do that now if you don’t feel comfortable doing it then find somebody who does and say hey you know i owe so much debt and i don’t want to pay them anymore and we’ll just start fresh and this person can help you navigate through bankruptcy so be careful where you go watch out for scammers. There are some people that are extremely trustworthy and others that are extremely untrustworthy and won’t leave you alone and there are certain things that they may ask you to do to prepare your case that you don’t necessarily have to do but definitely look at your options and consider those options carefully. If you choose the wrong option or someone tells you that you need to do something that you really don’t, they can cost you thousands of dollars. You got to be very cautious about that kind of stuff.

***DISCLAIMER*: THE INFORMATION CONTAINED IN THIS VIDEO IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL ADVICE. (THE OPINIONS SAID MAY BE WAY OFF BASED ON MY PERSONAL EXPERIENCE AS A CURRENTLY SELF EMPLOYED FOUNDING PARTNER OF THE LAW FIRM OF HENDERSON & ASSOCIATES.)

WHAT ARE SOME GOOD PLANS FOR GOVERNMENT ENFORCEMENT AGAINST STUDENT LOAN BANKRUPTCIES?

Student loan bankruptcies have increased over 400% since 2007. So in 2008, the Department of Education put in place a plan to protect students from themselves. They created an office called “Project HEAL” that was set up to serve students who were at risk of defaulting on their loans.

The government gave lenders a choice of forgiving these debts or having them switched to federal repayment plans, where borrowers paid back their loans gradually instead of all at once after getting a job.

But since 2011, many universities and state governments across the country have cut funding to Project HEAL, causing private companies to step in to provide services loans that meet the federal requirements.

In 2014, lenders sent 1 million letters to defaulters, offering 2 different loan modifications to repay only 25 percent of their balances while maintaining their accreditation with the schools.

So the question is Why do so many current and former college students struggle to pay off their student loans? Here are some answers about the problems facing student loan borrowers today.

Many people today think that student loans are free money. Well that’s not true. In reality, the government charges 20 percent interest on any outstanding balance, whether you’re paying it down or not. On top of that, there’s also late payment fees to worry about. These can stack up pretty quickly. And credit card companies charge heavy annual fees. All told, a private student loan can easily rack up into hundreds of dollars each month, or even several thousand dollars annually.

For many people, student loans are a way to pay for school without suffering the consequences of high tuition costs. But today, student debt stands at $1.5 trillion — that’s almost half our entire economy. More than 42 million Americans hold student debt, totaling $11,182 per household.

If you already have student loan debt, you might wonder how you’re going to pay it off. The good news is you don’t have to pay it all at once. What’s known as income-based repayment lets you reallocate your payments over time according to your income. Your monthly payment stays the same through generous 10, 15, or 20 year terms.

On the surface, it sounds great. But the truth is, you’ll end up paying a lot more than if you simply borrowed less money. Let’s say you borrow $10,000 and then make minimum payments throughout your term until it’s paid off. Then let’s say your salary increases by 25 percent, which means your adjusted gross income goes up by 25 percent. That translates to higher taxes, which means your total bill goes up by 25 percent or $1,250. Meanwhile, you’ve added six years to your term. At that point, you’re not making any extra payments either.

You could try to refinance your student loan to reduce the amount, but forgive the rest of the principal, making your interest rate lower. But that comes with its own complexities. First, you’d have to sell your house, which means losing out on equity. Second, when you refinance, you typically must pay off the old loan first, meaning you still owe billions more on principal. You also may have to move or switch banks.

Can I File For Bankruptcy On Student Loans?

Yes

Yes, you can file for bankruptcy on student loans. However, you should note that this option may not be the best choice for you if you haven’t completed any payments on your loans yet. In fact, one could argue that the sooner you pay off your student loan debt, the better off you’ll be down the road. That being said, here’s what you need to know about filing for bankruptcy on student loans:

There are basically two ways you can file for bankruptcy. If you don’t live near a courthouse, then you may be able to go to another local court to file for bankruptcy. Here’s how to find out more information about where you might have to file for bankruptcy.

There are three major types of bankruptcy filings: Chapter 7, 11, and 13. A chapter 7 bankruptcy filing requires you to completely liquidate all of your unsecured debts (that is, those that aren’t secured with some type of collateral), and turn over all assets to the trustee. Once everything is given to the trustee, you won’t have any personal liability on those debts. While this may seem convenient, it isn’t always the right way to go. Many people think they can reorganize their finances after they’ve had some time to breathe, and find a job again. However, there’s no guarantee that they will be able to get back on track financially after filing for Chapter 7 bankruptcy. For example, if you’re filing for bankruptcy due to medical bills that were caused by an accident/illness, someone else’s negligence, or some other external cause, that person may not be liable to make good on medical payments if he or she doesn’t have sufficient funds. Having all your money taken away from you makes it much harder to recover financially. So, if you want to keep your money and avoid going back into debt, then you may want to consider doing a Chapter 13 bankruptcy instead.

Chapter 13 bankruptcy allows you to repay your debts (including student loans) over time with monthly payments while still paying some of them off. You can use the rest of your income to create a repayment plan that works for you. When you do this, you will continue to have access to your own bank accounts, credit cards, and even car loans. However, you will likely lose ownership of any property that was used to secure the debt. Instead, you will become responsible for the remaining amount owed on the loan and can begin repaying it, plus interest. If you decide to go this route, make sure you talk to an attorney who specializes in consumer law before you proceed with Chapter 13 bankruptcy.

As stated earlier, whether you choose to file for Chapter 7 or Chapter 13 bankruptcy is entirely up to you. However, if you have federal student loans, you’ll want to stay away from Chapter 7 bankruptcy since that means you’d have to deal with the collection agencies. And, if you’re already dealing with them, you may not want to give them more power over your finances.

Finally, you’ll want to look into all your options for getting money back on your student loans. If you are eligible to consolidate your debt, you can take advantage of consolidation programs offered by private companies. These programs allow you to combine several different federal and private student loans into one single payment. Not only does it save you money, but it also helps you avoid defaulting on your loans. However, these programs generally require that you pay a lump sum upfront. Typically, you’re expected to put between 20% and 45% of the total amount of your student loans into the program. Of course, the lower percentage you pay upfront, the less money you’ll end up having to pay back in the long run. But, if you can afford it, the savings can really add up.

So, there you have it! Hopefully this article helped you learn a little something about bankruptcy on student loans. We hope it helps you determine whether or not filing for bankruptcy on your student loans is the right decision for you. Good luck on whatever path you choose!

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Can I File For Bankruptcy On Student Loans?

Here’s How To Find Out If You Can And What You Should Do About Your Debt…

If you’re struggling to pay off student loans, you might have been wondering if bankruptcy would help. Unfortunately, depending on where you live, some debt may be dischargeable under certain circumstances—but only if you file bankruptcy. So how do you know? Well, here’s a step-by-step guide on filing for Chapter 7 bankruptcy and seeing what types of debts you may be able to wipe out:

Step 1: Determine Whether Your Debts Will Be Dischargeable Under Bankruptcy

First things first: Before you even think about filing for bankruptcy, you need to make sure that your financial situation qualifies. That means figuring out whether the type of bankruptcy you want (Chapter 7 or Chapter 13) is applicable to your circumstances. Here’s how:

Chapter 7 vs Chapter 13 – If you go bankrupt under Chapter 7, you won’t owe any money for unpaid bills. Instead, creditors will get nothing. But you’ll still be responsible for paying back those who lent you money. As long as you don’t default on payments, you could keep your assets.

Chapter 13 vs Chapter 7 – If you choose bankruptcy under Chapter 13, you’ll likely end up owing money to creditors. However, instead of having to give them everything right away, you’ll have 10 years to repay your debts. Plus, you’ll have access to additional federal funding, known as “cram down,” to help you pay back your debts.

The bottom line is this: Depending on your state of residence, you may not qualify for bankruptcy at all. Don’t panic, though; we’ve got you covered. Our guides below will walk you through each step of the process, regardless of what kind of bankruptcy you decide to pursue.

Step 2: Decide Which Type Of Bankruptcy Is Right For You

When it comes time to determine which type of bankruptcy is best for you, consider these factors:

Your Current Income Situation – Are you making enough money to cover your monthly obligations? If not, Chapter 13 bankruptcy may be a good fit for you. In this case, you’d be given a fixed repayment plan over five years, in which you’d pay money back to the court.

Your Future Income Potential – If you expect your income to increase significantly, Chapter 7 bankruptcy isn’t going to work out well for you. You wouldn’t be able to afford the higher payments required under the program.

How Much Money You Owe Creditors – If you owe a lot of money to your creditors, then Chapter 7 bankruptcy is probably not going to be a viable option.

What Type Of Assets You Have – Most people don’t realize that their cars, homes, retirement accounts, etc., aren’t included in the bankruptcy proceedings. These items would have to be sold or liquidated before you’d be eligible for a fresh start.

What Kind Of Job You Have – If you work full time, you probably already know that your job (and paycheck) often determine your expenses. If you’re currently unemployed, Chapter 7 bankruptcy may not be the best choice for you. Chapter 13 bankruptcy, however, is a great way to get back on track financially.

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