Portland Student Debt Attorneys
When you complete a Chapter 7 or Chapter 13 bankruptcy, you are typically permitted to discharge any remaining unsecured debts. Qualifying unsecured debts include medical debt, credit card debt, and personal loans – but not student loan debt. Contrary to popular belief, however, it is possible to eliminate student loan debt through bankruptcy under certain conditions.
If you are struggling to make ends meet, you may be able to secure a student loan discharge. Our lawyers at Vanden Bos & Chapman, LLP can assess your circumstances and advise whether you are likely to qualify for relief. We are compassionate to the financial difficulties many of our clients experience as a result of burdensome student loans, and our team is prepared to fight for your financial future.
If your student loan debt results in undue hardship, Vanden Bos & Chapman, LLP may be able to help. Schedule a free initial consultation by calling (503) 664-3134 or contacting us online.
Why You Cannot Ignore Your Student Debt
If your federal student loan debt continues to grow and you foresee no practical means of paying it, you may be tempted to ignore it entirely. This is a mistake that can result in serious and damaging consequences.
When you fall at least 270 days behind on making a payment on your federal student loans, the government can garnish your wages and benefits without first securing a judgment. This means they can take a portion of your paycheck and other benefit payouts until your debt has been paid. The government can also take far more of your paycheck than private creditors. They may also choose to file a lawsuit against you if your student loan debt goes into default. If they win, they can place a lien on your home. It is always advisable to address student loan debt before these types of consequences occur.
Demonstrating Undue Hardship in an Adversary Proceeding
You will only be able to discharge your student loan debt if you can demonstrate having to pay it would result in “undue hardship.” The adversary proceeding is the legal mechanism through which you will have to persuade the court to allow debt elimination.
Proving that you will experience undue hardship is often challenging. Historically, bankruptcy courts are reluctant to grant these discharges, but they will consider several factors when adjudicating your case.
To prove undue hardship and qualify for student loan debt relief, you will need to show:
- You made a good-faith effort to repay your loans
- Your current financial situation does not allow you to sufficiently care for yourself or your dependents
- Your current financial situation is unlikely to improve in the future
Our Portland student debt attorneys understand how the courts evaluate and decide adversary proceedings. We can help you prepare a compelling argument that demonstrates undue hardship and work diligently to secure a favorable outcome. We will always be straightforward and direct if we believe you will not qualify for a student loan discharge, but our firm is ready to help you implement other types of debt relief solutions that will allow you to obtain a fresh financial start.
Contact Vanden Bos & Chapman, LLP online or call us (503) 664-3134 today.
How Bankruptcy Can Help You Address Student Loans
Bankruptcy alone will not allow you to eliminate your student loan debt. However, you must complete a Chapter 7 or Chapter 13 bankruptcy before you have the opportunity to request relief.
If you have little to no income to partially pay back creditors, you will likely qualify for Chapter 7 bankruptcy, which involves liquidating non-exempt assets. We can help you minimize the impact of liquidation. Many filers lose little to nothing.
If you do continue to have reliable disposable income, you will most likely need to file for Chapter 13 bankruptcy. This process involves committing to a repayment plan that lasts between three and five years. You will make monthly payments, the amount of which is determined by what you can currently afford.
Upon completing your Chapter 7 or Chapter 13 bankruptcy, you will be usually able to discharge unsecured debts. You will not be able to discharge student loan debt at this point, but you do have the opportunity to request relief through what is called an “adversary proceeding,” which is a type of lawsuit that seeks to reclassify your student loan debt as dischargeable.
Our Portland student debt attorneys can guide you through each step of the bankruptcy process and will work to maximize all available forms of relief. We will then help prepare and file your adversary proceeding if we believe you are likely to qualify for a student loan discharge.
Demonstrating Undue Hardship in an Adversary Proceeding
You will only be able to discharge your student loan debt if you can demonstrate having to pay it would result in “undue hardship.” The adversary proceeding is the legal mechanism through which you will have to persuade the court to allow debt elimination.
Proving that you will experience undue hardship is often challenging. Historically, bankruptcy courts are reluctant to grant these discharges, but they will consider several factors when adjudicating your case.
To prove undue hardship and qualify for student loan debt relief, you will need to show:
- You made a good-faith effort to repay your loans
- Your current financial situation does not allow you to sufficiently care for yourself or your dependents
- Your current financial situation is unlikely to improve in the future
Our Portland student debt attorneys understand how the courts evaluate and decide adversary proceedings. We can help you prepare a compelling argument that demonstrates undue hardship and work diligently to secure a favorable outcome. We will always be straightforward and direct if we believe you will not qualify for a student loan discharge, but our firm is ready to help you implement other types of debt relief solutions that will allow you to obtain a fresh financial start.
Contact Vanden Bos & Chapman, LLP online or call (503) 664-3134 today.
Our Clients Are Our Biggest Endorsers
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Your compassion and understanding have really made swallowing our fate a bit easier.
“Ann: I know this is your business, but I can’t tell you what your guidance has meant to Pat and me through this bankruptcy process. Your compassion and understanding have really made swallowing our fate a bit easier. So, thank you. You have a thankless job at times but know we are so appreciative!”
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Thanks again to Ann Chapman and the team there for their grace and their professionalism.
“Ann: Thanks again to Ann Chapman and the team there for their grace and their professionalism, courtesy, and excellent work at every turn.”
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Your caring and listening ear really helped me through this.
“Ann: I wanted to send you a note and thank you for the support and help you have given to me over the past five years. Your caring and listening ear really helped me through this. I appreciate it so much. Going through bankruptcy was a learning experience for me. I know once I can find employment somewhere I will be OK with my spending. I am not perfect, but I am so much better.”
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I think you are the best expert!
“Ann: I have to thank you again for all of your hard work, knowledge, time, and help you have provided me (getting through all this)! I truly appreciate what you have done. I think you are the best expert! I couldn’t have found anyone better.”
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Thanks!
“Ann and her staff’s top-notch professionalism with an unexpected but very appreciated warm personal touch during a rough patch in our lives AND an experience that was based on a workable plan that now has become our daily habit as we close this chapter and move on into a brighter future. A triple-combination that delivers success! Thanks!”
Choose the Right Bankruptcy Attorney for Your Case
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We provide individualized, thorough representation clients deserve.
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We are well-versed in all bankruptcy matters, from consumer to business affairs.
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We have some of the most recognized and awarded bankruptcy lawyers in the state.
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We offer same-day appointments to our clients.
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We've been advocating for clients since 1981.