It can be easy to fall behind on your student loan payments, especially if you are a struggling new professional in your chosen industry. Many people know that there are consequences for falling behind on payments, but sometimes the damage that can be caused can have greater impacts than we would like to believe. Sometimes, however, the consequences imposed on people are unlawful, and it may be in your best interest to seek the help of an attorney to fight these violations.
These are some of the most common consequences that you could face when you fall behind on student loan payments:
These repercussions can have lasting effects on your financial security. It is important that you do what you can early on to ensure that you do not face wage garnishments or seized tax refunds, and that you do not end up paying more than you have to for your education. Seeking the assistance of an attorney before you lose control of the situation can save you time, energy, and money.
Normally, student loans are not dischargeable in bankruptcy. It is not only a very difficult process, but near impossible. But there are limited circumstances in which an individual can sue the student loan lender in bankruptcy court (called an adversary proceeding) and prove financial hardship.
There’s no specific test to prove financial hardship, but considerations taken by the court are as follows:
Courts and judges may differ on whether these considerations are met or not, and the student loan company has the opportunity to challenge each of these. Individuals can expect a long lengthy adversary proceeding with additional fees and costs due to the litigation involved. The bankruptcy and discharge will also be prolonged and delayed until there’s a decision on the student loans.
If bankruptcy is your last resort, there are other options available to help manage your student loan debts.
Working with a professional can help ensure that your situation receives the best possible outcome. When you work with our student debt lawyers, we can guide you in the following ways:
Whether you are trying to prevent further financial hardship or fighting against an abusive collection agency, contact our offices today to schedule a consultation. Our Los Angeles student loan attorneys are experienced in protecting and guiding customers in regards to their debt; we can help you with your student loan, and can advise you on the steps you should take both now and in the future with regards to your student debt.
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