Student loan debt has tripled over the last two decades. In the few years between 2015 and 2018, student loan balances nationwide soared from just under $1 trillion up to nearly $1.5 trillion. According to research from Citizens Financial Group, more than 60% of all graduated students who take out loans can expect to be paying off debts well into their forties, and some may even be forced to delay retirement until 75 to account for their losses.
When dealing with such extreme levels of debt, it’s easy to understand why many hope that bankruptcy will give them a way out. However, this is not exactly correct, and it is not a straightforward matter to discharge, or remove, student loans during bankruptcy. At The Fuller Law Firm, PC, our San Jose student debt relief lawyers can help you better manage your debts, whether by guiding you through the bankruptcy process or negotiating a settlement with your lenders.
Contact us at 408-465-4472 to speak with our skilled legal team! We offer free 60-minute consultations to clients throughout San Jose, Oakland, and Salinas.
Unfortunately, in most cases bankruptcy will not allow you to waive your student loan debt altogether. But that’s not the end of the story: If you’re considering filing for bankruptcy, you may be able to ask the bankruptcy court to partially reduce your debt, or even discharge it completely, provided you can prove that paying back your student loans represents a significant financial hardship.
Even if your student loan debt can’t be discharged, bankruptcy can alleviate other debts and allow you to manage your month-to-month payments. Under Chapter 13 bankruptcy, a borrower can propose to pay back their debts based on household income and expenses, which may be a helpful option for borrowers who also work full-time. Because every bankruptcy case is different, it’s critical that you discuss your situation with a skilled attorney, to ensure you’re pursuing the right option for your needs.
When you’re struggling to pay back your debts and worried about the future, bankruptcy isn’t your only option. There are many alternative solutions that can lighten your overall debt burden, without hurting your credit score. Our debt relief attorneys can negotiate a settlement with student lenders directly, limiting your overall financial burden and modifying your payment plan structure.
In one recent case, our team worked with student lender Navient, and the company agreed to a complete discharge of the client’s loans in the amount of over $13,000. In another settlement, SunTrust agreed that its claim for more than $32,000 could be reduced to $18,000, greatly easing our client’s payments and lifetime debt burden.
Although the outcome of negotiation will vary depending on your circumstances, at Fuller Law Firm, PC, we promise to help you pursue all your financial options for student loan debt relief. With more than 20 years of experience and thousands of cases filed, we can offer you customized legal counsel and dedicated service.
Give us a call today at 408-465-4472 to see how we can help with your student debt!