Attorney
Filing for bankruptcy is one of the last things that anyone wants to do, and it’s easy to see why. The consequences of a bankruptcy could persist for quite some time and make it difficult to move forward financially. At the same time, bankruptcy does serve a vital purpose for those individuals who just cannot make their payments and get out from beneath their crushing debt.
If you have significant student loan debt, you may be wondering if it is time to file for bankruptcy. Consulting a knowledgeable bankruptcy lawyer will help you understand your options and make the best decision for you and your family. Turn to the Hoover, AL firm of Pleasant Legal Solutions.
How to Know You’re Ready for Bankruptcy
There are both pros and cons to bankruptcy. On the plus side, it can give you a fresh start with your debt and finances, cease all collection activities and legal actions, and help you develop a serious plan for managing what you owe and creating a budget. On the other hand, depending on your individual circumstances, your bankruptcy could impact your credit, cause you to liquidate and give up certain items of property, and still leave you with some debt.
These are serious considerations, which is why bankruptcy should never be taken lightly. You can know it’s time for bankruptcy if:
Your debt is truly overwhelming
Simply having a large amount of student loan debt is not enough to seek bankruptcy. In fact, the bankruptcy court will require a borrower to demonstrate that they face undue hardship. This threshold is not easy to meet and means that the borrower cannot afford to enjoy a minimal living standard.
You can show that you have tried to pay the debt
One important criterion that a student loan borrower must meet is that they made reasonable efforts to handle the debt in a manner besides filing bankruptcy. This truly makes bankruptcy a last resort and one that requires proof of an attempt to pay down the debt. By documenting your repayment efforts, you stand a stronger case of an advantageous result in Alabama bankruptcy court.
You have explored other options
Debtors typically have one of several options for handling their debts, although as a student loan borrower yours might be limited. Still, it’s important to speak with your lender or loan servicer to find out which solutions are available. Bankruptcy is one of several choices you have and should be evaluated along with other options.
You understand the basics of bankruptcy
There are unfortunately many misconceptions about bankruptcy that give the process an undeserved negative reputation. The reality is that many individuals from all walks of life have declared bankruptcy and successfully moved forward in their financial lives. By speaking with a seasoned Hoover, AL bankruptcy attorney, you can make an informed decision about your student loans.
You have spoken with an experienced attorney
Not every lawyer has experience handling bankruptcy, and many don’t understand how specifically to deal with student loan debt. Recent changes in the law have made it easier to obtain bankruptcy relief for student loans, although it is still fairly difficult to meet the undue hardship standard. A skilled law firm can explain the benefits, drawbacks, and processes.
Speak to Our Team About Your Debt
The best decision you can make concerning your student loan debt is to do something about it, and talking to an attorney is a good step in the right direction. Reach out to Pleasant Legal Solutions. We can schedule your confidential consultation today.