Many students acquire student loans hoping to pay back the money when they get a job. Unfortunately, some are unable to secure well-paying jobs after graduating. This makes it challenging to pay back their loan as expected. If this describes your current situation, you might lose your assets or have your wages garnished if you don't pay back what you owe. Fortunately, you can avoid these repercussions by declaring bankruptcy. However, student loans are difficult to discharge in bankruptcy, so you may want to hire a legal advisor to guide and assist you in getting a discharge. They will assist you in getting a favorable resolution in your case, as you will learn in this discussion:
How Chapter 7 Can Solve Your Problem
The first step in seeking a reprieve for your accrued loans is filing a court claim. This will let the judge know that you're facing financial hardships and help them determine whether you qualify to get relief from your debt. If you don't bring this claim while you're unable to make payments, the court may find that you're refusing to pay back what you owe, so your application might be dismissed. Unfortunately, this can increase the risk of losing your personal belongings to your lender.
It is important to note that you must prove an inability to repay your loan in order to get consideration in court. For instance, you can provide proof that you don't have the resources to repay the money you borrowed to finance your education. You may also provide documents showing that you have tried to repay the money but have yet to clear it. In any case, your lawyer will help you get the evidence needed when filing and seeking a discharge through chapter 7. They will also argue your case in court to help you get the relief you need.
Applying for Chapter 13
It is challenging to wipe out student loans through chapter 13. However, filing this chapter can help you avoid losing your assets to your creditors. When you declare bankruptcy, you get an order stopping any attempts by your lenders to collect student loans or other debts before the judge rules on your case. In addition, your attorney helps you create a repayment plan that makes it easier to pay back what you owe. This will give you the breathing room to fix your financial situation. As a result, you will be in a better position to make repayments.
Contact a bankruptcy lawyer for assistance if you're looking to discharge student loans through bankruptcy. They will do so by building a strong case with the aim of proving that you're facing financial hardships.
Contact a local bankruptcy lawyer to learn more.