Can bankruptcy help me with my student loans?

| Apr 5, 2017 | Chapter 7 Bankruptcy, Firm News |

If you have asked yourself this question, you are in good company. Thousands of college students graduate from college every year, and a majority of them leaves school saddled with a significant amount of loan debt. It can be difficult to get a job right away, and, consequently, it can be difficult to pay a loan with no money.

You may be dealing with student loan debt and eager to learn about the legal options available to you. While bankruptcy is a viable option for many Ohio residents dealing with various types of debt, it cannot discharge student loan debt. Despite the fact that it cannot help you get rid of this particular financial burden, bankruptcy may still be a beneficial choice.

What bankruptcy can do for you

Individuals who have a significant amount of unsecured debt, which includes credit card bills and medical debt, may be eligible for Chapter 7 bankruptcy. Also known as liquidation bankruptcy, Chapter 7 requires the payoff of some debts through the selling of certain assets. This option can provide the following benefits:

  • Halt all contact from creditors

  • Stop repossession action

  • Stop wage garnishment

  • Allow for discharge of certain debts

  • Allow for applicant to keep certain valuable assets

The discharge releases the debt holder from any further liability regarding that particular balance. Once the discharge process is complete, the debtor is no longer legally obligated to pay that amount.

The financial ability to deal with student loans

Bankruptcy may not be able to help you get rid of your student loans, but it can help you with other types of debt. Often, financial struggles with one overdue balance leads to problems in other areas as well, and it is quite possible that you would benefit from relief from other types of unsecured debt.

Upon emerging completely or almost debt free from the bankruptcy process, you will have more disposable income to confront the student loan debt that remains. Bankruptcy can allow you to take back your life and effectively deal with other types of debt.

Security for the future

Chapter 7 bankruptcy is not the best choice for everyone, but it could be the ideal option for your situation. If you can no longer manage your student loan or credit card debt and find yourself facing constant harassment from creditors, there is a way out. You may find great benefit in seeking counsel from an attorney regarding the possibility to moving forward with the bankruptcy process.