When it comes to issues with student loans, there really are few options that are available. What is important is that there are some options and your Minneapolis bankruptcy lawyer can help you determine which option is the best course of action to take.
Many times, students will place their loans in deferment or forbearance if they have not graduated yet, but there is a time when even this becomes an issue because the total loan amount still works against the debt-to-income ratio, affecting one’s ability to buy a home or a vehicle.
Student Loans In Bankruptcy
In order to include a student loan in Chapter 7 bankruptcy, the circumstances have to be dire. A person literally has to be very ill or they must be disabled to the point they are unable to work and earn the income to pay the loan. If it can be shown that the loans absolutely cannot be paid back now or in the future, then it may be allowed for them to be included in the bankruptcy filing.
If Chapter 13 is the bankruptcy method of choice, then student loans can be included in the repayment plan. In the case of Chapter 13, secured and unsecured debt can be included. This means being able to pay back loans in a way that you can afford.
Reviewing Other Student Loan Repayment Options
You and your Minnesota bankruptcy lawyer can review the different options that are available to you. You may be able to consolidate your loans into a more affordable payment. You may also be able to speak with a credit counselor who can help you create a budget that will enable you to catch up your loans and get yourself on a steady repayment schedule. There are also loan forgiveness programs for certain career fields. You may wish to explore your options there as well.
When you are able to start paying your loans on time, you open yourself up to more possibilities financially. You will find that the amount of debt that you have decreases and that you can buy the home or the car that you wish to have.
Contact A Minnesota Bankruptcy Attorney
Student loans can be difficult to deal with, as they do cause a whole set of problems in regards to your ability to buy a car or home. If your student loans are high, in default, or simply keeping you from moving forward financially, you may need some guidance in regards to what to do about them. To find out how the McKinney Law Office can help you, call the Minneapolis office at 612-206-3706 or the St. Paul office at 651-379-4110 to schedule a free consultation.
This law firm is a debt relief agency, and we help people file for bankruptcy relief under the United States Bankruptcy Law.