Navigating Bankruptcy and Student Loans: Get the Facts at Calcagno and Associates Bankruptcy Law Firm

If you’re burdened with overwhelming student loan debt and considering bankruptcy as a potential solution, it’s important to understand the complexities surrounding student loans in bankruptcy proceedings. At the Calcagno and Associates Law Firm, our knowledgeable bankruptcy attorney is here to guide you through the intricacies of bankruptcy and student loans. We’ll help you explore your options, understand the implications, and make informed decisions about your financial future.

1. Student Loans and Dischargeability: Under the current bankruptcy laws, student loans are generally not dischargeable in bankruptcy, meaning they cannot be wiped out entirely like other types of debt. This applies to both federal and private student loans. However, there are some exceptions and potential avenues for relief that we can explore together.
2. The Undue Hardship Standard: To potentially have your student loans discharged in bankruptcy, you must meet a stringent standard known as the “undue hardship” test. This test varies depending on the jurisdiction and requires proving that repaying your student loans would impose an undue hardship on you and your dependents. The undue hardship standard is challenging to meet and typically requires filing a separate legal action called an adversary proceeding.
3. Adversary Proceeding: An adversary proceeding is a lawsuit filed within the bankruptcy case specifically to seek a discharge of your student loans. It involves presenting evidence and arguments to the court, demonstrating that repaying your student loans would cause undue hardship. Our experienced bankruptcy attorney will assess your unique circumstances, evaluate the likelihood of success in an adversary proceeding, and guide you through the process.
4. Other Benefits of Bankruptcy: While student loans may not be dischargeable in bankruptcy for most individuals, filing for bankruptcy can still provide other significant benefits. By eliminating or reducing other types of debt through bankruptcy, you may free up your financial resources to manage your student loan payments more effectively. Bankruptcy can also provide immediate relief through the automatic stay, which temporarily halts collection efforts, including wage garnishments and lawsuits, giving you breathing room to explore other options.
5. Repayment and Negotiation Options: If your student loans cannot be discharged through bankruptcy, our attorney will help you explore alternative strategies to manage your debt. This may include negotiating with your loan servicer for lower monthly payments, extended repayment terms, or exploring income-driven repayment plans. We’ll advocate for your best interests and work towards finding a manageable solution that aligns with your financial situation.
6. Holistic Financial Planning: At the Calcagno and Associates Law Firm, we take a comprehensive approach to your financial well-being. We’ll analyze your entire financial picture, including your student loans, income, assets, and other debts, to develop a personalized strategy that addresses your unique circumstances. Our goal is to help you achieve long-term financial stability and explore all available options beyond bankruptcy to manage your student loan debt effectively.

Navigating the intersection of bankruptcy and student loans requires specialized knowledge and expertise. At the Calcagno and Associates Law Firm, our experienced bankruptcy attorney is well-versed in the complexities of student loans in bankruptcy proceedings. We’ll provide you with the guidance, support, and representation you need to make informed decisions about your financial future.

Contact the Calcagno and Associates Bankruptcy Law Firm today to schedule a consultation with our skilled bankruptcy attorneys. Let us help you explore your options, navigate the complexities of bankruptcy and student loans, and work towards a brighter financial future.