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Many people in Miami choose to declare bankruptcy so that they can get a fresh start. After debts are cleared away, the next stop for some people could be going back to school. When thinking about pursuing a degree, people who have a bankruptcy filing on their record might wonder if they will be able to qualify for student loans.

A bankruptcy filing will not affect a person’s ability to qualify for federal student loans. In fact, it is unlawful for a government entity that operates a student loan program to discriminate against an applicant because they filed for bankruptcy in the past. While it is easy for many individuals to qualify, a federal student loan are often a good funding option due to their low interest rates.

A person who has filed for bankruptcy may be able to qualify for other types of loans as well. Although a bankruptcy filing may lower a person’s credit score initially, lenders will be looking at other factors besides a numeric credit score. For example, lenders may examine a person’s income, existing debt and current financial obligations. After a person’s debts have been discharged in bankruptcy, they may have an impressive income-to-debt ratio, which might help them qualify for lower rates.

An attorney may be able to help someone who is struggling with debt have their obligations discharged through personal bankruptcy. During this process, an attorney may also be able to help the debtor to develop a plan for improving their credit score after the bankruptcy filing by obtaining small debts and paying them off regularly, which might help them reestablish their financial foundation.