Someone In Debt Can Benefit From Tips Provided By Jacksonville FL Bankruptcy Attorney

By Elinor Fowle


Not all student loans can be eliminated through bankruptcy proceedings. Students usually take on loans thinking a job after graduation is a sure thing. If someone remains in debt years later and still cannot pay them off, a Jacksonville FL Bankruptcy Attorney can be available to help.

Student loans are guaranteed by the government and must always be repaid. It does not matter how long the loan has been outstanding. There is only one situation that will facilitate forgiveness of a student loan.

If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.

You cannot pay for internet service, cable television or cell phone service. The court also requires proof that your financial situation is unlikely to get better in the near future. Therefore, making loan payments will continue to keep you from buying the absolute necessities of life for you and any dependents.

An attorney must petition the federal court for a hardship discharge. This is applicable in a chapter seven bankruptcy proceeding in which all debt is discharged. Unlike the chapter seven, the chapter thirteen offers the petitioner a chance to pay off all debt.

The Chapter 13 petitioner must be earning a sufficiently high income. It must enable him to afford living expenses plus make the required loan payments. All interest on the debt will cease for the duration as soon as the court proceedings are finished. He is usually given five years to repay all debt.

An attorney may offer a free consultation to determine the client's options. If he is, a petition is filed in the federal court. There are filing fees to pay. There will also be court costs for administering the payment schedule and attorneys fees to be paid.




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