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Can you prove undue hardship and shed your student loans?

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Many people wrongly believe that student loans are not dischargeable in bankruptcy. In fact, they are, but you must meet certain circumstances to earn the discharge. Private student loans are easier to dismiss in bankruptcy while federal loans present more of a challenge. The primary barrier to student loan debt relief in bankruptcy is that so few people seek it.

New class action suit promises hope for student loans in bankruptcy

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You may have heard the prevailing misconception that student loans are not dischargeable in bankruptcy. This is misinformation and, in fact, among those who request relief, roughly 40% get a partial or total discharge of school debt in bankruptcy. The issue is that less than one-half of one-percent of bankruptcy filers ask for help with student loans. Now, a recent class action suit against student loan lender Navient could make it even easier to discharge student loans in bankruptcy.

What you need to know about student loans and bankruptcy

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You may have heard that it’s pretty much impossible to discharge student loan debt through bankruptcy. That’s not true. It’s not automatic, and it takes some extra work, but if you meet certain requirements, you might qualify for bankruptcy relief of some (or all) of your student loan debt. The reason so few people discharge college debt in bankruptcy is that so few even try.

Student loan relief is possible in bankruptcy

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Student loan debt is on the rise and is unique among types of debt because of the powers of the creditor and lack of statutory limits on collection. Federal student loans do not have a statute of limitations and debt collectors working for federal loan servicers have tools many other collection agents do not.

Got old tax debt in Greensboro? Bankruptcy may help

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When you get into a situation of unaffordable debt, the consequences can be far-reaching. One side-effect of money problems may be delinquent tax debt. If you didn’t have enough withheld from your paychecks during the year, you might find that you owe the IRS. When you’re already struggling to pay bills, it might be impossible to send Uncle Sam what you owe. With tax day just around the corner, on April 17, here’s what you need to know about unpaid federal income taxes.

Yes, seniors can have student loans

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Did you know that even decades after you finish college, you could be haunted by student loans well into your golden years? With student loan balances on the rise and many borrowers using parent PLUS loans to help their kids and grandkids get through college, there are many opportunities to wind up deep in college debt that you can’t afford.

Bankruptcy doesn't wreck your credit for a decade

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You’ve probably heard the myth that filing bankruptcy ruins your credit for a decade. If you’re deep in debt and are considering Wilmington bankruptcy, you might be worried your credit will be permanently damaged. The great news is that bankruptcy will NOT tank your credit and, in fact, will help you get it back to good faster than most any other debt solution.

Yes, your bankruptcy petition can be rejected

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Filing bankruptcy is not something people look forward to, and most want to avoid if possible. However, drowning in debt is a much worse alternative. When you’re tired of living paycheck to paycheck and dodging debt collectors, bankruptcy can help. But what do you do if the court rejects your Wilmington bankruptcy petition?

Bankruptcy can stop foreclosure

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Are you in default on your Wilmington mortgage? If you’re delinquent and don’t catch up, you are at risk of having your property foreclosed. As soon as you miss your first payment, you’re in default of your loan agreement. If you miss a payment but make it up, it’s not so bad. The real problem comes when you miss payment after payment so that you can’t recover. That puts you on a path straight to foreclosure. But how long does it take to go from missed payments to losing your home?