Student Loan Attorney in Savannah
Helping Clients Reduce or Eliminate Student Loan Debt
Millions of individuals have financed their higher education through student loans. Currently, U.S. student loan debt has exceeded 1.7 trillion dollars. As an investment in your future, this is often a good idea. However, student loan payments can later prove burdensome if you are unable to find corresponding career work or you face other negative circumstances.
If you fall behind on your student loans, your debt can increase to insurmountable levels that are no longer sustainable. What then? How do you get out from under an untenable debt-ridden situation?
If you are facing this problem, it is in your best interests to seek legal advice from a trusted source. At the Law Offices of Mark A. Bandy, PC, we concentrate most of our practice on debt relief. We can evaluate your situation to determine the best possible plan of attack to handle your runaway financial scene.
Attorney Bandy has more than 20 years of experience in dealing with all possible debt situations and the fallout they bring to your life. Getting answers is only a phone call away. We recommend you reach out to our firm for the help you need.
How to Prove Undue Hardship for Student Loans
Under the U.S. Bankruptcy Code, a student loan debt may be dischargeable if its continued payment after bankruptcy will cause “undue hardship” on you and your dependents. As "undue hardship" can vary widely depending on a person's circumstances, the bankruptcy courts will often use the Brunner Test to determine if your student loans are eligible for a bankruptcy discharge.
Under the Brunner Test, you must demonstrate the following:
- Your current income and expenses you cannot maintain a minimal standard of living if you are obligated to repay your student loan
- Other circumstances also are in play that show that the above will likely continue for most of your repayment period
- You have, in the past, shown good faith in making payments on your student loan
Not all bankruptcy courts will use the Brunner Test to determine if your situation counts as "undue hardship." Whether or not the test is used, however, the burden of proof for your hardship is on you as a debtor.
Important tips for proving undue hardship include:
- Keep records of your student loans and all related paperwork
- Collect documentation of your expenses, such as rent payments, medical bills, or receipts for groceries
- Create a list of your debts and monthly payment obligations
- Save and show all evidence of communication with your lender
If you can prove undue hardship, your student loan may be reduced or eliminated. You may be more likely to obtain a student loan discharge if you are disabled or over 50.
Declaring Undue Hardship
To potentially receive a student loan discharge, you will need tofile bankruptcy under Chapter 7 or Chapter 13. You will also need to file an additional petition for what is called an “adversary proceeding.” This complaint will allow you to outline your case of undue hardship.
Ways to Reduce Student Loan Debt
Bankruptcy and undue hardship is a solution in cases where you have tried and exhausted other options. For federally-funded student loans, you may qualify for a loan forgiveness program or for an income-driven repayment plan. These plans offered by the federal government can reduce your monthly bills and can prevent you from going into default on your student loan.
The bankruptcy solution above is also a solution if you have actually gone into default on your loan, especially in cases of private loans where you may be facing wage garnishment from your lender. However, if you have gone into default on a federal student loan, you may be also be able to recover through a student loan rehabilitation option offered by federal loan holders.
It is also important to remember that through the elimination of unsecured debt in bankruptcy, your income will likely increase to the point where you can make your student loan payments. Even if your student loan cannot be reduced or discharged through hardship or other programs, a bankruptcy will free up your resources so that you can stay out of student loan default.
Can Debt Collectors Garnish Student Loans?
If you are behind paying your federal student loans, they may be garnished without a court order. It is typical for garnishments to need approval from the court, however, student loans do not.
This means that the collector can remove the money that they are entitled to directly from your bank account or from your payroll checks. They do not need your permission when the money is taken. By law, your bank and your employer are required to follow the instructions on the garnishment.
Learn More About Student Loan Solutions
At the Law Offices of Mark A. Bandy, we have helped thousands of individuals regain financial stability through debt relief solutions. If you are drowning in debt, discussing your case is the first important step you can take towards financial recovery. Let us help you take that step and move forward into a better future.
If you are in a bad place financially, have lost all hope, and feel there is no one out there to turn to, then please reach out to Mr. Bandy before you make any other decisions. He will get you the relief and guidance you are looking for.- Crystal
He helped us stay calm and positive throughout the whole experience.- Faith
He answered all my questions and made the whole situation go smoothly.- J.C.
Mark was very patient with my questions, answered them thoroughly and his recommendations were accurate and proved true.- M.A.
After reaching out to Mark my initial apprehension was immediately put to rest. Mark is very understanding and broke the process down in its most simple terms.- Ben
Flexible & Affordable
We offer free consultations, weekend, after-hour, and virtual appointments for your convenience.
We are accessible to our clients and are here to answer all questions throughout the process.
When you retain us you can rest assure you will receive excellent representation and the best possible outcome.
Attorney Mark A. Bandy has over 20 years of experience successfully handling bankruptcy filings in Savanna.