Orange County Chapter 13 Lawyer - Get Rid Of Student Loans
Student loans cannot be discharged under bankruptcy law, unless the debtor can prove it would be an undue hardship to have to repay it. Most bankruptcy courts will require repayment of student loan debt. Student loan debts, in an Orange County Chapter 13, are treated similarly to priority debt — it is payable in full like back taxes and child support payment.
As an Orange County bankruptcy lawyer, this is a fact most of my clients do not know or fail to recognize.
Although student loans cannot be discharged in a Chapter 13 bankruptcy, as an Orange Country Chapter 13 bankruptcy lawyer, I have seen that well researched Chapter 13 still provide many advantages. One advantage is that a Chapter 13 plan of reorganization determines the size of the student loan payments. The court-approved plan will allow a debtor to pay the student loans in a staggered manner, mostly from three to five years. The debtor will have to pay the remainder of the student loans at the end of his Chapter 13 bankruptcy, but at this point, the debtor can ask for a discharge of the remaining student loans because of undue hardship.
It is typically difficult to convince a bankruptcy court to discharge student loan debt. A bankruptcy court will consider factors, like poverty, the inability to pay the loan due to a permanent disability, and a debtor’s good faith effort to repay the loan for a long period. To have a student loan debt dismissed, a debtor must file a separate action in bankruptcy court called a “Complaint to Determine Dischargeability of a Debt”. You must consult an Orange County bankruptcy lawyer to see if this separate action is right for you.
Being an Orange County Chapter 13 bankruptcy lawyer, I have advised clients that it is almost impossible to show undue hardship unless the debtor is physically unable to work and the situation isn’t likely to improve in the future.
If you are burdened with student loans and need advice on how to properly address them, the award-winning team of bankruptcy lawyers at The Law Office of Harold D. Thomson will help you achieve a fresh start. For over 35 years, our Southern California bankruptcy lawyers have helped thousands of individuals, just like you, achieve the financial freedom they deserve. Call our office today at 888.665.8330 for a free, no-hassle consultation, download a FREE copy of our California Guide to Bankruptcy or find out how you can become a client right now!
No related posts.