Bankruptcy and Student Loan Debt
Your student loans can be a debt that can affect you for years to come. There are people in many age groups from baby boomers to millennials that are facing student loans regularly. There are many presidential candidates this year that are working to address the student debt crisis but depending on who gets elected, student borrowers may be shocked to know that many of their student debts may not be able to be forgiven!
One of the common queries that people have is what happens to the Frozen bank account? Will you be able to access it or it stays frozen for life? In any situation if your account is frozen, you have the right to consult a lawyer who can analyze your case and help you get the right steps to protect your account.
What many students were shocked to find out this year is that many government services can intercept tax refunds in order to pay off the liquid student loan debts. Even though Americans can file for bankruptcy to discharge many types of debts, a student loan is a type of debt that may not be available for discharge but only for a repayment plan. A proposed program called the SLN program is a new way that students are finding debt relief. The SLN program is designed to build an open line of communication between lenders and debtors to discuss a repayment plan for student loans. The program can facilitate the communication between the borrower and lender and ensure that a repayment plan can be developed under a mutual agreement. The participation for the program needs to be initiated by the debtor. It can also be initiated by a chapter 13 trustee as well as a creditor at the time that a student loan filer submitted Chapter 13 petition for bankruptcy. To take maximum advantage of the program, negotiations need to be opened up to help the student loan lender manage their repayment plan.
If you have ongoing student debt that is causing you stress, speaking to a bankruptcy attorney can be a great way that you can consider filing for bankruptcy and start working towards managing your student loan debt!
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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