Student Loan Bankruptcy Lawyer in Long Island, NY
Helping You Get Your Student Loan Debt Discharged
Student loan debt in the United States has totaled about $1.7 trillion in 2021. It grows about 6 times faster than the American economy altogether, with student borrowers having an average debt of $39,351 each.
This alarming data demonstrates the magnitude of our nation’s student loan debt crisis. Pursuing higher education comes at a significant cost, one that may take borrowers up to 20 years to pay off, if not more. The financial and emotional burdens placed on students are immense, which is why our Long Island student loan bankruptcy attorney is committed to helping clients get the fresh start they need and deserve. After exploring every possible avenue to discharge your student debt, our lawyer can formulate an effective legal strategy and tirelessly advocate on your behalf. We will go the distance to help get your student loan debt reduced or fully discharged.
Speak with us about your situation by scheduling a free consultation online or by calling (516) 407-8199!
Can You Discharge Student Loans in Bankruptcy?
Contrary to popular belief, student loan debt can get discharged in bankruptcy, but only under extremely limited circumstances. It’s not impossible to discharge debts through bankruptcy, but you must meet the necessary criteria before pursuing this type of relief. The circumstances that you need to meet to get your student loans discharged through bankruptcy are demonstrating that repayment would impose an undue hardship on you and your dependents, which must be decided in an adversary proceeding in bankruptcy court.
In other words, you must file an adversary proceeding for a judge to determine whether or not your student debt imposed an undue hardship on you and your dependents. As such, the bankruptcy court may examine the following factors to evaluate whether repaying your loans would cause undue hardship:
- If you are forced to repay the loan, you would not be able to maintain a minimal standard of living
- There is evidence that this hardship will continue for a significant portion of the loan repayment period
- You made good faith efforts to repay the loan before filing bankruptcy
If the court determines that you would experience undue hardship, the following outcomes may occur:
- Your loan may be fully discharged, and you will not have to repay any portion of your loan. All collection activity will stop
- Your loan may be partially discharged, and you will still be required to repay some portion of your loan
- You may be required to repay your loan, but with different terms, such as a lower interest rate
Our Student Loan Debt Services
Our Long Island student loan bankruptcy lawyer provides comprehensive legal services to help with all stages of the process. We understand that this isn’t a black and white matter, as all cases are different. Therefore, we provide personalized representation fueled by unique strategies to help clients overcome their financial burdens.
With this in mind, our services include, but are not limited to:
- Providing legal counsel and guidance every step of the way
- Exploring alternatives to bankruptcy, if any
- Informing you of your rights and legal options
- Handling credit disputes
- Protecting against harassing creditors and abusive conduct
- Communicating on your behalf with student loan holders, student loan servicers, debt collectors, and administrative entities
- Helping resolve delinquencies or defaults
- Negotiating with lenders to help reduce or dismiss your debts
- Advocating for the best possible outcome in court
Consequences of Student Loan Debt
Student loan debt may feel like a consequence in itself, but its impacts extend far beyond that. If your debt substantially accumulates, the government may garnish your wages, which means it will take money from your paychecks. As a result, you may have trouble meeting your other financial obligations.
Another consequence of student loan debt is no tax refund. While you typically get a tax refund when you file your taxes, student debt can change that. You may either get no tax refund or a very small amount if you’re lucky.
On top of wage garnishment and intercepted tax refunds, collection fees may be added. As you can see, a general consequence of student loan debt is losing money, whether it’s due to wage garnishment, tax refund interception, or collection fees. These penalties are the last thing you need if you are trying to pay off your debt.
When to Call an Attorney for Your Student Loan Debt
Student loan debt can follow you for several years, even decades. Instead of waiting until you just can’t take it anymore, recognize when it’s time to call a lawyer. This would not only help your peace of mind but also improve your chances of getting the outcome you’re looking for.
As such, we encourage you to call an attorney about discharging your student loan debt if you are:
- Getting calls from debt collectors
- Having problems with your loan servicer or debt collection agency
- Getting threatened with a wage garnishment, social security offset, or tax refund intercept
- Getting sued
- Unsure of how to get out of default
- Unable to pay your current minimum
- Thinking about whether or not you qualify for discharge
- In need of guidance or information for a particular student loan issue
- Considering bankruptcy
Questions? Come to us for help. At Robert H. Solomon, PC, you can trust that our student loan bankruptcy attorney will go above and beyond to help you get the student debt relief you’ve long-awaited. Contact us at (516) 407-8199 to get started!