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Why Debtors Should Talk to a Bankruptcy Attorney about their Student Loans

Posted By Allmand Law Firm, PLLC || 9-Oct-2013

You may wonder if it's really possible to get student loans discharged, especially after hearing someone you know personally got theirs eliminated in bankruptcy. If this is the case, you may want to review the possibility with a qualified bankruptcy attorney in Dallas-Fort Worth. There may be some information you might not know that could help you make loan payments affordable, or you may actually qualify if you meet requirements set in the bankruptcy code.

Private student loans may have a better chance of qualifying for elimination in bankruptcy if your situation fits into the standards of the bankruptcy court. Some loans may be eliminated if they were for a school that doesn't have proper accreditation recognized at state or federal levels at the time you attended. Usually, you have to prove making such payments would create an undue hardship.

Another point to consider is understanding the type of student loans you have and how it originated. Student loans are not created equal and they must actually fit the definition of a student loan under the Internal Revenue Code and Higher Education Act. While more borrowers want to pay down their debt, many are wondering how else they can pay down their loans with little or no money left over after paying essential expenses each month.

Many people may qualify to have their student loan debt discharged, but don't bother asking about it believing it is impossible to get discharged. At least you can get a legal opinion on your loans and if they don't qualify for discharge, eliminating your other debts through Chapter 7 bankruptcy or Chapter 13 bankruptcy may still be something to consider in helping to increase your ability to pay off your loans.

Categories: Student Loans
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