Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog
More and more signs are pointing toward bankruptcy being the best platform going forward to address student loans. Why?
- We can often discharge private and even federal student loans (if either an undue hardship exists or it’s an unqualified education loan);
- We can cure a default of a federal student loan (where consolidation or rehab opportunities no longer available);
- We can have you pay something low like $100 per month in a Chapter 13 plan for five years in many cases;
- We can defeat the need for a high student loan payment when you cannot recertify your income or get onto IBR outside of bankruptcy;
- Predictable results with a court order;
- Catch up on delinquencies to avoid 25% being added to your loan balance once a default occurs (after 270 days of delinquencies);
- Debt discharged in a bankruptcy is tax free – avoids tax bomb at then end of an Income Driven Plan;
- Many unsecured creditors do not even bother to file proofs of claims or the debt if sold, the transferee is negligent about filing the transfer;
- No need to deal with the SBA .
- Let me repeat that one: no need to deal with the SBA. That’s new as of today, and likely will rocket to the top fast…
While we are still working our way through the weeds, and we are not sure how much resources the Department of Justice will use to defend an adversary case you might file in bankruptcy to get rid of your loans, we think that bankruptcy may be the ultimate solution for many with student loans. It’s at least worth a conversation.
