Bankruptcy and Student Loans
Student loans can be a debilitating force in your life. You needed the loans in order to go to school. You didn't expect that you would be coming out into a recession where jobs are difficult to find. If you have mounting debt, you need to talk with a bankruptcy attorney to learn about your options
At Atlas Consumer Law, we have the experience you need for exceptional legal representation in court. Our attorneys are knowledgeable of the law, current on new trends and provide personal service for all of our clients. Located in Lombard, Illinois, we serve clients in Chicago and the surrounding areas.
Knowledge is power. Contact a Chicago bankruptcy attorney about your mounting debt to discuss your options. Call us at (312) 313-1613.
Student Loan Debt
Unfortunately, student loan debt is considered nondischargeable debt under the law. In rare exceptions, individuals may get rid of their debt if they are injured and the judge rules that their student loan debt is a proven hardship. However, even if your injury is grave, your hardship is subjective.
Handling Student Loan Debt
There are other ways to deal with student loan debt.
- Chapter 13 bankruptcy: As part of a Chapter 13 bankruptcy, you can reorganize your nondischargeable debt. However, you still have to pay 100 percent of your nondischargeable debt under this option.
- Various payment options: Student loan lenders offer various loan repayment options. Some are based on income and others extend the life of the loan.
- Public service loan forgiveness: There are a number of jobs that allow for some public service loan forgiveness. If you work in one of these jobs and pay your loan payment without deferring for 120 consecutive payments, you may be able to have all or part of your debt forgiven.
- Extreme hardship: If you are able to prove a certain threshold of hardship you may be able to get rid of student loan debt completely.
Our bankruptcy lawyers in Chicago, IL handle the full range of bankruptcy matters. If you need assistance in handling your financial situation, contact us online or by calling us at (312) 313-1613.