With the cost of education escalating each year, more and more students are beginning to question whether they want to put themselves under the pressure of having to repay a huge student loan after graduation, or leaving college. And for those students who have graduated, and suddenly realized they can't afford to pay for their student loan, there are very few alternatives that would offer relief. The thought of paying back thousands of dollars for a student loan, can give a college student many sleepless nights. Once they realize that they will not be able to pay the student loan back, they begin to look for alternatives. The bad news is that there are very few options left for the student after graduation from college.
Often, bankruptcy is the only way out. I would imagine that most students would be shocked at the idea of filing for bankruptcy. It would probably be the last thing on their minds to do. Obviously it would be devastating to appear on their credit report.
But it may very likely be their only way out of the huge debt they accumulated in obtaining their college education. When You File For Bankruptcy Filing for bankruptcy can be quite tricky at times. Note that there is more to bankruptcy proceedings than filling up forms and signing a few documents. As part of the bankruptcy procedure, you will need to appear before a judge who will determine whether or not you are qualified for bankruptcy and what are the things that you are entitled to in connection with your status. You would obviously want to do some research to educate yourself properly, in order to understand the bankruptcy process, and what to expect.
It is at that point where you will begin to reduce the uncertainty and fear associated with bankruptcy. You will also want to take advantage of the free consultations that lawyers provide to new potential clients. After talking to several lawyers, you will probably find the lawyer that you feel most comfortable with. They will help you to understand things like how your assets and property may or may not be involved in the bankruptcy process.
Probably one of the biggest fears is not knowing how your property and assets may be exposed to the bankruptcy process. In your reading, you will discover that certain property that you personally own may be exempt from garnishment. You will want to read up on these laws on bankruptcy very carefully, and very thoroughly. Your lawyer or someone from the courts should be able to explain things to you, as well as to answer your burning questions.
On the other hand, if you are too confused to get things organized on your own, you better hire a bankruptcy lawyer to handle your case for you. There are a number of good bankruptcy lawyers that can help you figure out what to do with your student loans. So now you have educated yourself, and I would say that it is the perfect preparation for starting to shop for a lawyer. Interview them. Have your questions ready, and ask them.
Hire the lawyer you feel the most comfortable with. They can help you determine the student loans that can and cannot be forgiven. They will help you present your case in the best possible way.
Randall S. Carlisle, is the publisher of the Student Loan Resource Center website. We primarily focus on the student loan, and student loan debt. We strive to provide fresh, current information about student loans.