Hiring a Lawyers for Student Loans in Arizona?
Let’s start off by saying there is no official legal specialization called “student loan lawyer,” but there are plenty of people out there professing to be lawyers for student loans in Arizona. People claiming to be lawyers for student loans are sometimes skilled litigators who have a great deal of experience with student loans and other types of lending. Those lawyers for student loans may be able to help you, but they could cost you more than just paying back the loan. There is a dark side of some claiming to be lawyers for student loans. Some lawyers for student loans jumped on the student loan train much in the same way some attorneys did during the mortgage crisis. So, beware of lawyers for student loans in Arizona who make exaggerated claims that are too good to be true. The reality is that you will likely need to pay back most or all your student loans unless you can prove undue hardship in bankruptcy.
Discharging Student Loans in Bankruptcy
If you hire a bankruptcy attorney in AZ, you may have some success negotiating with the student loan servicer or collection agency that is attempting to collect on the loan. In most cases, however, there is little incentive for them to work with you. This is because the current law makes it almost impossible to shed the student loan debt. As bankruptcy attorneys in AZ, we understand the burden that huge student loan debt can put on your family. We have seen it countless times; despite having an advanced degree, you cannot earn enough money to support your family and pay back your student loans.
The good news is that one of our bankruptcy attorneys in Arizona may be able to help. Bankruptcy will often give you enough relief to be able to pay back your student loans by discharging other unsecured debt and freeing up some of your income. In some cases, a chapter 13 bankruptcy may be used to help you catch up on a student loan or otherwise reshape the loan during the bankruptcy to make it more manageable. However, under the right circumstances, a bankruptcy attorney in AZ may be able to have your student loans discharged in bankruptcy.
As stated previously, the bar has been set very high for a hardship discharge of student loans in bankruptcy, but that does not mean that you won’t qualify. Consulting with a bankruptcy attorney in AZ is the easiest way to find out if you may qualify for a hardship discharge of your student loan debt in bankruptcy.
What is Undue Hardship in Bankruptcy
The undue hardship standard in bankruptcy requires student loan borrowers to prove they cannot maintain a minimal standard of living and pay back their student debt. They must also show that their financial issues will exist for a significant portion of the life of the loan. They must also demonstrate that they attempted to repay the debt and that they attempted to resolve the issues by working with the lender and other means. Very few borrowers are able to meet this standard.
New Relief for Student Loan Debt May Be Coming
Bankruptcy attorneys in AZ have long complained that there are too few options for people struggling with student loan debt. Now that the amount of student loan debt has reached crisis level nationwide, the Department of Education has recently started formulating a proposal to revise the definition of undue hardship to make it easier to discharge student loan debt in bankruptcy.
Why Hire a Bankruptcy Attorney in AZ?
Student loan lawyers may be able to help you in some situations, but your best bet is still to rely on the skill of bankruptcy attorney in AZ. Our bankruptcy attorneys in AZ may be able to help you negotiate with your student loan servicer, but we also carry in our tool belt decades of experience using bankruptcy law to help people struggling with student loan debt get the relief they need. Call us today for a free consultation.