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Millions of Americans have financed their way through advanced education with student loans. As of 2020, the amount of outstanding debt of this nature reached upwards of $1.5 trillion according to financial experts. For many, this means starting their careers already burdened with overwhelming debt while trying to make ends meet.
Others who find it difficult to find work or pull in salaries that can make payments possible along with meeting their other financial needs face an even more difficult situation. Finding solutions to overwhelming student loan debt, therefore, is extremely valuable to these individuals and their families.
At Oakes Law Office, PC, our Medford student loans attorney is well-versed in this matter. Our firm can offer information and guidance in potentially handling student loan debt through bankruptcy as well as through other options. Every case is unique and you will need to consult with Attorney Karen Oakes about your individual situation.
After discussing the particulars of your case, it can be determined how best to approach your debt situation through appropriate legal action or other available methods. Our attorney has over two decades of experience in handling debt relief for clients throughout Jackson County.
Courts are very reluctant to discharge student loan debt. However, it may be possible to reduce or eliminate student loan debt through a Chapter 7 bankruptcy filing though it is a difficult prospect in an already complicated legal procedure. Only under specific circumstances will you be able to claim a student loan under bankruptcy law.
Those circumstances include proving that paying your student loan debt will cause “undue hardship” on you or your dependents. Whether or not you qualify for undue hardship is decided by the courts on a case-by-case basis. The test applied to determine if you face undue hardship varies from court to court and even judge to judge so no clear legal standard exists.
For example, you may have to prove that you will not be able to keep even a minimal standard of living for yourself and your dependents if you must also pay off student loans along with other expenses and that this situation will go on for a long timeframe well into the future. Others may qualify due to permanent disability discharge options.
Even if you qualify under the undue hardship test, your case will be reviewed by the court for other factors, such as if you have made other efforts to resolve your debt. These other good-faith efforts may include seeking alternative payment options through your debt service agency. In the end, if you are successful, you may receive only a partial discharge.
These options include:
Being financially strapped due to overburdened student loan debt can be an extremely stressful situation. If you and your dependents are suffering economically because of this, you need to explore your options. Our debt relief attorney can provide the legal help you need to find ways to resolve your financial crisis so that you can move forward in life and create a brighter future for yourself and your family.
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