Student Loan Bankruptcy

Student loan bankruptcy is only possible when a person is able to claim that they or their dependents are going suffering from unavoidable hardships as a result of not having enough to make payments and a living at the same time. A person should only every officially file for bankruptcy as a last option as doing reflects poorly on credit history which can lead to more difficulties in the future. However, occasionally doing so is necessary in order for people to get out of impossible financial situations and get back on their feet again. There are ways of obtaining assistance no matter what the problems might be, as the Scripture says, "But mine eyes are unto thee, O GOD the Lord: in thee is my trust; leave not my soul destitute" (Psalm 141:8). People do not have to be left destitute and hopeless for there is always hope.

The financial world can be a tricky one if people are not adequately prepared to successfully traverse the ebbs and flows of a dynamic economy. Good financial planning does not come easily and is something which requires a learning process. Healthy spending habits and wise decisions are good places to begin and can often prove to be adequate ways of building a firm foundation on which to build for the future and avoid possible outcomes such as student loan bankruptcy. Problems can arise when unexpected costs add up and can hurt a person's financial standing. As is also the case, some people who face unplanned costs, such as illness, hospital fees, automobile problems and so on, do so in addition to losing an important job which perhaps was the person's only source of income. Such a situation can be a problem, especially with recent college graduates. Graduates do not always have the skills to cope with losing an important job and keeping up with possible bill either due to a lack of experience, poor planning, or a combination of the two. Regardless of the reason, student loan bankruptcy is a way out for some, and is a tactic that can put people back on the right track.

The only way a person can officially file for student loan bankruptcy if there is an actual physical reason for why they cannot work, and proof that future unemployment is impossible due to one's physical condition. Before a person would take such a drastic move the steps towards finding any possible alternative solution should be done first. If someone has been physically injured, ill or for some reason loses or is unable to keep a steady job, perhaps there could still be the option to seek out another alternative through which an adequate living could be made. Those with families to support might find the task difficult, or in some cases impossible and the family might suffer as a result, by way of the lack of sufficient funds with which to buy food and pay the necessary bills. Also, if someone has dependents, which means people who rely on them for a living, does not have to be family members, and the task of securing steady funds is proves impossible, then they qualify as bankrupt and can file accordingly.

Those who see filling for student loan bankruptcy as the only alternative should be cautioned that doing so might not totally do away with all loan payment problems. Instead, one may only be able to consolidate the debt along with any other outstanding bills. Such is the case for people who do have a chance for future employment which could bring along a steady income, at which time the debtor would be allotted three to five years to pay the debt off. Certain rules apply to those might be able to secure an income in the future, and different laws occur with applicable codes. There are ways of determining if the status of bankrupt is applicable to certain cases. People, who are unsure as to the best course of action, should either talk to a financial expert about the predicament or in the very least look into possible alternatives. The Internet can be a good source to find tips and advice on all that goes into filing for student loan bankruptcy, and possible alternatives and even tips concerning ways in which to stay out debt and in good financial standing. Claiming a bankrupt status can help in extreme cases for a person to get out from under debt when the outcome seems bleak, but should be a lat resort and avoided if possible.

People who wish to get out from under debt must have sufficient evidence that they or their dependents indeed suffer from 'undue hardships' to qualify for student loan bankruptcy. In the past, a common procedure for graduates to do was to file for bankruptcy shortly after graduation in the hopes of doing away with the debt before payments would have to be made. Since that time a law was passed that strictly changed the requirements for the official qualifications which constitute being bankrupt, mainly, the requirement of 'undue hardships'. The only way such an act is possible is if a court of law deems that there is just cause and decides that payment would cause the debtor, and dependents, if applicable, to suffer. Only when a court of law agrees with and come to such a ruling in which a person qualifies, will they be able to file for student loan bankruptcy and after the fact a person should do what they can to obtain some form of income or stability for the future.

• Tweet
• Share
• Share
• Share
• Share