It is a common misconception that student loan debts cannot be discharged through a bankruptcy filing. This statement has often been dismissed as a myth by many judges and bankruptcy professionals. If you have been overburdened with enormous student debt, you should consider filing for bankruptcy.
Can you ignore your student loans?
If you have been overwhelmed with a lot of student debt, you may have considered various ways of getting out of it. But choosing to ignore it is probably not the best idea. Government-held loans account for most of the student loans in the United States. The Federal government has many debt recovery methods. It could take parts of your social security benefits, seize tax refunds, and garnish wages. If you don’t repay within a fixed time, your loan could be transferred to a private collection agency. These agencies could then levy additional charges on you. It is thus best to take action as soon as possible to get your debts cleared.
Process for discharging loans through Bankruptcy
Bankruptcy for student loans can be filed through Chapter 7 or Chapter 13 filing. But first, you need to hire a bankruptcy attorney. Although hiring an attorney is not necessary, it certainly helps to navigate the whole process quite efficiently. Experienced bankruptcy attorneys who have dealt with student loan bankruptcies can undoubtedly help you clear your debt effortlessly. After hiring an attorney, you need to go through the adversary proceedings.
Adversary proceedings are initiated after the filing of a written complaint. The judge who deals with the proceedings then decides the fate of your debt, and it could either be fully discharged or partially discharged. This process is not a guarantee that your loans will be discharged, contact a Houston bankruptcy attorney to find out if your debt can be eliminated.