California Bankruptcy Lawyer Blog

A California bankruptcy attorney discusses student loans.

When a debtor first files for bankruptcy, he may still have student loans in bankruptcy that he needs to repay. Unlike many other debts, student loans are not usually discharged during the process of going through a bankruptcy. There are times when a person may discharge his student loan debt, but they are the exception rather than the rule.

Permanent and Total Disability
Debtors can have student loans in bankruptcy discharged if they have suffered from some form of permanent and total disability. Because non-physical disabilities are hard to prove, a person with a mental disability cannot expect this form of debt relief.

Extreme Financial Hardship
In a case of rare financial hardship, a judge may rule that a student loan in bankruptcy may be discharged completely. As with the disability case, this happens exceptionally rarely. Most debtors should expect to have a repayment plan worked out that includes their student loan.

What Else Can Happen?
If a person’s student loan is in default, the government can take a person’s tax return checks until the debt is paid. Wages can also be garnished, although a judge may provide temporary relief from wage garnishments after a person is declared to be financially insolvent.

Please do not hesitate to contact us at one of our California offices by calling 1800.941.6730 for your debt resolution needs. You can receive a free consultation over the phone, or request a free in person appointment at a Sagaria Law office nearest you. Please visit our website at www.sagarialaw.com and fill out a free online evaluation form to determine if you are a qualified candidate for bankruptcy. Sagaria Law's team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff can assist you with all aspects of your bankruptcy case. We at Sagaria Law can assist you regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. and we are happy to help! Our bankruptcy attorneys located throughout California and Oregon can assist you with your bankruptcy questions.

A San Jose bankruptcy lawyer asks San Jose consumers in debt to consider the question: What Should I Do Before Bankruptcy?

The choice to file bankruptcy is never an easy one. So before bankruptcy, there are many things to consider. Being overwhelmed by a mountain of debt is one sign before bankruptcy comes to mind. Unforseen circumstances such as an accident (medical bills), sudden job loss (rendering you unable to meet billing and mortgage deadlines), student loan debt catching up with you, or a combination are all signs before bankruptcy is considered for most.

Before bankruptcy, everyone should consider meeting with a qualified and experienced bankruptcy attorney to review finances, explore options, and develop an action plan before bankruptcy. This type of planning before bankruptcy can provide a clear picture when things are clouded up my debt and stress. Credit counseling and becoming familiar with the necessary tools to ensure future financial stability are also key before bankruptcy so that after bankruptcy, when the debtor becomes debt-free, they have built a stable path for future financial freedom.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

5 Tips to Help with Student Loan Debt

A San Jose Bankruptcy Attorney lists 5 tips to help with student loan debt...

Student Loan Debt Tip #1
Know Your Debt
Stay in touch. Be aware. Know what you owe.

Make a list of what and who you owe on your student loan debt. Keep track of your lender(s), the balance you owe and your repayment statis (current balance, due dates, end dates, interest, etc.). Visit this link if you are unclear as to what you know, and more importantly: ask your lender!

Student Loan Debt Tip #2
Review Your Repayment Options
A 10-year repayment plan is typical with student loan debt, but if that isn't going to work for you there are other options out there. You can extend your student loan debt payment plan out beyond the 10-year marker, but an even longer plan will increase the interest on the life of the loan even though the monthly payments are lower. An Income Based Repayment Program maybe something to look into. Visit www.IBRinfo.org for more.

Student Loan Debt Tip #3
What is Your Grace Period?
Every student loan has one: It is the timeframe allowed by the lender between the time you finish school and the time your first payment is due. These will vary so if you have more than one loan or lender, get clear on what is due when.

Student Loan Debt Tip #4
Update Your Records

Stay ontop of your end of the bargain by updating your lenders if you move, change your number, or have a change in your financial situation such as job loss. Make sure you allow your lenders to do the same with you -- read what they send you and respond accordingly.

Student Loan Debt Tip #5
Ask For Help
If you cannot keep up with your student loan debt ... get help! Don't default, you have options.
To learn more visit www.projectonstudentdebt.org.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.