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Many young professionals are faced with outstanding debt from student loans; getting the help of a bankruptcy lawyer in Raleigh is a viable option to address this situation.
An average college graduate has more than $37,000 student debt. With inflation and other bills to pay, your student loan can add up to your other obligations (i.e., credit cards, home, etc.). It is easy to see why filing for bankruptcy is the best and only option.
Can a Student Loan Debt be Discharged?
Initially, student loan debts didn’t qualify for discharge within five to seven years. At the turn of the 21st century, student loan debts were not considered dischargeable – that is, until you could prove what is called “undue hardship.”
To prove undue hardship:
- The borrower should have made an effort to pay off the balance.
- The borrower proves that he/she will be unable to keep up a minimum standard of living while paying off the balance.
- Circumstances prove that the borrower will continue to incur hardship in paying off these loans unto the near future.
Discharge of Student Loan Debt for Consideration
You could have all or majority of your debt discharged by filing for bankruptcy with a lawyer in Raleigh, NC. But first of all, you have to give sufficient evidence that you did indeed try to pay off the balance while struggling to cope financially up to the present day.
Here are a few steps you can take when filing for bankruptcy:
- Compile all of the documents of the student loan debt eligible for discharge
- Sort the records according to where they were used. Group according to payment for tuition, payment for books and other learning materials, and payment for registration to the college.
- If it is still possible, plot out a ledger timeline for all the payments relating to the loans. By having a well-plotted timeline, you can strengthen your claim for “undue hardship.”
There are other debts eligible for discharge, which you could factor into the totality of your bankruptcy consultation. Check if they don’t fall under the categories of debt under the Bankruptcy Code, and make sure that you also account for them.
Get Expert Advice from an Attorney
With all of your documents and records in tow, the next step is to consult with a bankruptcy attorney. Your attorney will look at your debts and records and make an assessment. It should be clear thereafter if you should proceed with filing for bankruptcy, which type to file for, whether it is Chapter 7 or Chapter 13, and which student debts can be discharged.
If you want an honest assessment of your debts and other finances concerning bankruptcy, we at the Weik Law Office can do it for you. For more than 20 years, Weik Law Office has assisted clients in a total of 15,250 bankruptcy cases, making us the most trusted bankruptcy lawyer in Raleigh, NC.
Call us at 919-845-7877 for a free consultation with our team professionals, and we will help you sort out your financial situation.