CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

4 Things You Need to Know about Bankruptcy and Your Student Loans

will filing bankruptcy stop student loan garnishmentWill filing bankruptcy stop student loan garnishment?

Filing for bankruptcy can be a daunting process. But if you’re struggling to keep up with your student loan payments, it may be an option worth exploring.

Will it end collection efforts or prevent the loss of assets? Will filing bankruptcy stop student loan garnishment? Is it really the best option for you?

Here are four things to know about bankruptcy and your student loans:

1. You Might Be Able to Discharge Your Student Loans in Bankruptcy

Student loans are considered “non-dischargeable” debts in most cases, but there is an exception for those who can prove they are facing “undue hardship.”

To qualify for undue hardship, you must show that making loan payments will cause you “irreparable harm.”

For example, your student loans are causing undue hardship if they prevent you from meeting basic living expenses or from maintaining a minimal standard of living.

In some cases, bankruptcy won’t eliminate your student loan debt. You’ll still owe what you owe after you file. However, filing could still help you. By eliminating other types of debt, more money will be available to pay your student loans.

2. Bankruptcy Might Temporarily Stop Collection Efforts on Your Student Loans

If you’re behind on your student loan payments, filing for bankruptcy can stop collection efforts by the lender or debt collector. This may give you some time to get back on track financially.

Will filing bankruptcy stop student loan garnishment?

Maybe.

When you file, something known as an automatic stay goes into effect. The automatic stay stops, at least temporarily, all collection efforts. This means you’ll get at least a temporary reprieve from paying your bills while your bankruptcy case is sorted out.

3. Bankruptcy Has a Negative Impact on Your Credit Score

Filing for bankruptcy is considered a “black mark” on your credit history. It can cause your credit score to plummet. This may make it difficult to borrow money in the future or to rent an apartment.

But it’s important to consider your current financial situation and how it’s affecting your credit score. Chances are it is being damaged even without filing.

In many cases, filing for bankruptcy will allow your score to improve faster than allowing your financial problems to build.

4. You Have Options

If you’re struggling to keep up with your student loan payments, there are other options available besides bankruptcy. You may be able to apply for a deferment or forbearance, which allows you to temporarily suspend or reduce your payments. You can also try to negotiate a payment plan with your lender or debt collector.

Bankruptcy is not the right choice for everyone, but it’s important to know your options if you’re struggling to pay back your student loans.

If you’re feeling overwhelmed by your student loan payments, don’t panic – there are other options available. You may be able to apply for a deferment or forbearance, which will allow you to temporarily suspend or reduce your payments. You can also try to negotiate a payment plan with your lender or debt collector.

Will filing bankruptcy stop student loan garnishment? Maybe.

We would be happy to answer any of your questions and help you get started on the path to financial freedom.

Contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions