As the cost of a college education escalates each year, students are starting to take a long look at whether they want to be responsible for paying back such a large debt. And unfortunately, there are very few options left for the student who realizes they cannot afford to pay back their student loan after graduation.
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.
Yes, filling for bankruptcy a few months after graduating from college looks bad but it may be your only way out of the mountain of student loans that you have accumulated during your college days. Obviously this is something you would need to think long and hard about. Educating yourself about the bankruptcy process would clearly be the first step.
Filing For Bankruptcy
The experience of filing for bankruptcy can present some challenges. It is much more than you might expect. Of course there are forms and documents to be carefully filled out. There is definitely a formal procedure to the bankruptcy process. Part of that process is to appear before the judge, who will determine if you are qualified or not, to receive bankruptcy protection.
Yes, things can be quite confusing at this point so you need to do your homework well. If you cannot afford to get a lawyer to do the dirty works for you, you better learn everything that you can about bankruptcy proceedings. Note that when you file for bankruptcy, the authorities will have to divest you of your properties to pay for your existing student loans.
You will be pleased to know that some property you personally own, may be exempt from garnishment. As you are researching on bankruptcy, you really should pay careful attention to the properties that are exempt from garnishment. You will want to read the laws and consumer information on bankruptcy. Careful reading is a must. You should be able to get your questions answered from an attorney during your free consultation, or from someone from the courts.
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.