Are you struggling with repaying your student loans? Have you seriously considered filing for bankruptcy? Here are some things you need to know about filing for bankruptcy when faced with student debt.
What You Need to Prove
In order to qualify for bankruptcy, you will usually have to prove three things. You’ll have to prove that you’re facing considerable hardship with paying back your loans and that you don’t have enough to pay back your loans and support yourself. You also have to prove that this hardship will last for the duration of your loan. In addition, you have to prove that you tried in good faith to work out a solution for paying back your loans.
It’s Not That Easy
Proving the three points above is not as easy as it may seem. Remember, you have to prove that your hardship will last for the duration of the loan. This means that in order to qualify, you might have to show that you won’t be able to work and earn an income for that time period.
Before deciding on the bankruptcy route, look at other options that may be available to you. Bankruptcy ruins your credit score and leads to other problems down the road. Look into forgiveness options, income-driven repayment plans and hardship programs that your vendor may offer. Bankruptcy should be a last resort.
Call a Lawyer
You need to call an attorney to help you out. Bankruptcy is a complicated process and requires knowledge and experience. Contact us today for more information.