Learn If Your Federal Student Loans Qualify For Bankruptcy
Millions of Americans will resume paying their federal student loans come Oct. 1. While everyone prepares for the significant change, you may worry about how factoring in those monthly payments could leave you struggling financially. However, depending on your circumstances, you may be able to discharge your student loans through bankruptcy.
Our attorneys at Telpner Peterson Law Firm, LLP, can work with you to see if you qualify for filing bankruptcy on your student loans. And if you do, they can also help you navigate the process. Our lawyers have handled bankruptcy cases for both consumers and creditors across Iowa, giving them a unique experience and perspective that can provide our clients with a competitive advantage.
Understand The New Rules Surrounding Student Loan Bankruptcy
To improve how student loans are evaluated and processed in bankruptcy court, the Department of Justice (DOJ) released new guidelines detailing how and when borrowers can discharge their student loan debt. Below is a breakdown of what you’ll need to know.
Who Is Handling This?
While the DOJ is in charge of managing and detailing the guidance for the process, it created this guidance in collaboration with the Department of Education (ED). ED has three distinct goals it wishes to accomplish during this collaboration. These are as follows:
- Setting clear, consistent and transparent expectations for all student loan borrowers
- Simplifying how facts and evidence get collected in student loan bankruptcy cases
- Increasing the number of cases in which the government offers more leniency to borrowers because of undue hardship
Our team can help you with every part of the process, from completing the appropriate paperwork to offering advice on proceeding with your case. You can speak with one of our attorneys to learn more by calling 712-309-3738.
When Can You Discharge Student Loan Debt?
According to recent guidelines, you can qualify to discharge your student loan debt if:
- You cannot currently repay your loans.
- You believe your inability to repay your loan will continue well into the future.
- You’ve made an honest attempt to repay your loans.
You must complete an attestation form to prove that you meet the qualifications. These forms provide details about your income and expenses to the ED so that it can determine your financial capacity to pay.
Is There A Time Limit For Submitting Your Attestation Forms?
Currently, there is no strict time limit for completing these documents. However, it’s recommended you submit them as soon as you can.
Let Our Team Of Iowa Bankruptcy Lawyers Guide You
You may feel anxious about the return of student loan payments come October. However, if you believe you qualify for a discharge, speak with one of our qualified bankruptcy lawyers at Telpner Peterson Law Firm, LLP, today by calling 712-309-3738 or completing our contact form. Our team looks forward to hearing from you.