Houston Student Loan Settlement Attorney
Do You Have Student Loan Debt?
Are you grappling with the weight of student loan debt? You're not alone. With a staggering 41 million Americans shouldering student loans owned or guaranteed by the U.S. Department of Education, the total national student debt has reached a staggering $1.1 trillion. For comparison, U.S. total credit card debt is estimated to be approximately $3.34 trillion dollars.
Recent data from the U.S. Department of Education paints a concerning picture, with approximately one-third of borrowers facing delays of more than five days on their student loans, and estimates suggesting that six to seventeen percent of loans are more than thirty days overdue.
What is Your Next Step in Student Loan Debt?
So, what can you do when student loan debt becomes an overwhelming burden? It's essential to understand that for student loan lenders and servicers, delinquencies may not be a major concern. Government-backed student loans continue to accrue interest until fully paid, and various federal laws empower lenders to collect these debts. Furthermore, student loans are generally not dischargeable in bankruptcy, except under certain conditions.
Section 523 (a) (8) of the Bankruptcy Code does allow for the discharge of student loans in bankruptcy, but only when the borrower can demonstrate an undue hardship. This is a stringent standard that requires proving:
- Making payments on your student loan will not allow you and your dependents to maintain even a minimal standard of living,
- That there is almost no chance that your financial situation will change
- That you have made a good faith effort to repay the loan.
Should you or a family member be cautious about taking on a student loan?
Absolutely. The ease with which student loans can be obtained, coupled with their long-term financial implications, demands careful consideration. Government backing may make them seem accessible, but they can have a lasting impact on your financial well-being.
Are You Subject to a Wage Garnishment?
Wage garnishments can disrupt your financial stability, limiting the amount available in each paycheck. If you're dealing with wage garnishments due to student loans or other debts, there are solutions available.
A Chapter 7 bankruptcy or a Chapter 13 reorganization can be effective in halting or reducing garnishments. While a dischargeable debt may be limited in a Chapter 7 proceeding, a Chapter 13 reorganization can provide relief even for debts that cannot be discharged. For instance, tax debts can be managed through a Chapter 13 plan, allowing you to repay them over several years. Child support arrears can also be addressed through a Chapter 13 reorganization while continuing to meet ongoing child support obligations.
Important Concepts About Student Loan Debt:
- Home Foreclosure
- Vehicle Repossesion
- Wage Garnishments
- Medical Bills
- Credit Card Debt
- Payday Loans
- IRS Debt
- Loan Modifications
- Property Tax
- Being Sued?
Need student loan help? Contact Keeling Law Firm today!
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