Bowie, MD Student Loans Debt Lawyer

Bankruptcy Attorney Helping Address Student Loan Debt in Bowie, Maryland

Most people who attend college do not have the ability to fully pay their tuition and other fees in cash. Although some receive scholarships or financial aid, many students finance their higher education with one or more student loans. Whether through a private lender or a federal program, you are expected to repay your loans after you graduate or stop attending school. In many cases, making those payments can be a real struggle. You may consider filing for bankruptcy as a form of relief for several types of debt, but discharging student loans will often require extra procedures. You need a knowledgeable attorney to help you address these debts correctly.

Called "the people's attorney," Hope Blocton of Bloc One Services, LLC understands how stressful dealing with constant financial strain can be. She will explain the pros and cons of Chapter 7 and Chapter 13 bankruptcy before helping you decide which option best suits your needs. She knows the criteria for discharging student loan debt, and she will help you through the process. Begin rebuilding your future with Hope.

Student Loan Debt Is Not Always Dischargeable Through Bankruptcy

Many kinds of debt are eligible to be discharged by filing for bankruptcy, but there are some exemptions. Student loan debt is usually exempt, but exceptions may be available in certain situations.

If repaying your student loan debt would cause an undue hardship for you and your dependents, you may qualify for a discharge. The "Brunner test" or another method may be used to evaluate your situation to determine whether you qualify. Factors that include your expenses, income, and ability to make payments may be considered.

Other exceptions may be available if your lender is not a nonprofit organization, and your student loan was not funded, insured, or guaranteed by a governmental unit. Local court decisions may affect your eligibility for debt relief in these cases.

We understand that legal situations like these can be confusing. If you want to find out whether you can include your student debt in a bankruptcy filing, just call our office at 240-200-0076.

Filing an Adversary Proceeding to Address Student Debt After Filing for Bankruptcy in Maryland

If you qualify to include your student loan debt in your bankruptcy case, you will not be granted relief automatically. You must file an adversary proceeding in the bankruptcy court after you file for Chapter 7 or Chapter 13 bankruptcy to request that a student loan be included in your case. Attorney Hope Blocton knows how to prepare for these proceedings, and she will advocate on your behalf.

How Bankruptcy Can Help if Your Student Debts Are Non-Dischargeable

Most people have a pretty consistent monthly income, but it will only stretch so far. When you have several debts requiring you to make multiple monthly payments, even covering the minimum payments could leave you struggling to take care of your family.

If you pass the means test for Chapter 7 bankruptcy, the majority of these monthly payments could be eliminated. Freeing up those funds can make it easier to balance your budget and make payments toward your student loan.

Choosing Chapter 13 bankruptcy means your outstanding debts will be restructured. Instead of making several monthly payments, one to each creditor, you will make one consistent payment to the bankruptcy trustee. That monthly sum will be distributed between your creditors in accordance with your approved plan. In many cases, the remaining balances will be eliminated upon completion of your repayment plan. You will be more likely to be able to stick to a budget when you do not have to make so many different payments.

Call Our Bowie Bankruptcy and Student Loans Attorney

There are many lawyers out there, but not all of them have the knowledge and skills needed to help you address debt-related issues effectively. You can trust Bloc One Services, LLC to skillfully guide you through your bankruptcy filing, providing quality service without exorbitant fees. Call 240-200-0076 or send a confidential message online to discuss your situation during a free consultation. We serve Washington D.C. and communities in Charles, Prince George's, and Montgomery Counties.