No one plans to declare bankruptcy. But, as you move through life and expenses pile up, sometimes it becomes the best option. Traditionally with bankruptcy, student loans would not be included.
However, with the right legal approach, you can not only get other debts forgiven, but also work on reducing or completely eliminating your student loan debts. So, what is the relationship between bankruptcy and student loans? Before declaring bankruptcy on student loans, let’s have a look.
Declaring Bankruptcy on Student Loans
When it comes to student loan debt, bankruptcy has not always been the recommended solution. In fact, it wasn’t until the last decade that lawyers really started to use bankruptcy for this purpose.
This is because student loans were usually considered “non-dischargable,” which meant they could not be considered for bankruptcy filings. Fortunately, when attorneys started questioning this, a new option became available for those with student loans.
Student Loan Debt Bankruptcy
Looking at bankruptcy and student loans, the old way to consider whether they could be dismissed was to look at whether they caused “undue hardship.” Since the court system established a very high bar for this definition, most lawyers never even tried to get loans forgiven or dismissed. Fortunately, there are some creative ways around this.
When declaring bankruptcy on student loans, the first thing to consider is how much of the loans actually went to paying for college expenses. In many cases, student loans include extra money for the cost of living, food, transportation, and other costs you might have during your education. In these cases, the burden of “undue hardship” becomes less important.
Instead, simply identifying that these expenses were unrelated to education could be a path to including them in bankruptcy.
Bankruptcy and Student Loans in Florida
Considering bankruptcy, student loans can be a major factor when filing. With many graduates looking at tens of thousands in student loan debts, it’s important that you not overlook this burden. And, with the right legal strategy, you can make sure these loans are looked at when filing for bankruptcy.
Student loan debt bankruptcy is still a relatively new practice area, but here at the Law Offices of Patrick L. Cordero, we have been working with bankruptcy cases for over 30 years. With that experience, we work on the forefront of student loan forgiveness to ensure you can get the best outcome regarding your debt.
Working with the Largest Bankruptcy Lawyer In Florida
At the Law Offices of Patrick L. Cordero, we are proud to be the largest bankruptcy law firm in the entire state of Florida. Offering personalized attention to every case, we understand that your situation is unique. And, we approach each unique situation to ensure you get the attention you deserve. If you want to consider declaring bankruptcy on student loans, having an experienced lawyer on your side can go a long way.
With the right attorney behind your bankruptcy, student loans can become a thing of the past. And, since Patrick personally works on your case, you can be sure you have an experienced and passionate attorney on your side. Trust the Lawyer of the Decade, the Minority Lawyer of the Year, and the Largest Bankruptcy Firm in Florida and we’ll work to get you the best outcome possible. Call Patrick today for a free consultation at (305) 445-4855.