The cost of education in this country has sky rocketed over the past several years. In the meantime, the economic environment has gone downhill. Many once high paying careers have become over-saturated or no longer pay the same salary. As a result, many people with undergraduate and graduate degrees find themselves with a significant amount of student loan debt that they are unable to pay. Omaha, Nebraska attorneys Burke Smith and Dana Ulrich understand your predicament. While most people are not able to eliminate their student loan debt through bankruptcy, there are some exceptions. Call our office today.
Bankruptcy attorneys applying the “totality of circumstances” test to student loans for Omaha residents
Dealing with student loans is not the same as discharging credit card debt in bankruptcy. It is extremely difficult to have student loan debt discharged. With that said, there are specific circumstances in which it may be allowed. Nebraska uses the “totality of circumstances test” to determine if someone should be able to include student loan debt in their chapter 7 bankruptcy. This test takes into account the debtor’s past, present, and future resources, living expenses, relevant facts such as medical issues and marital status, and any other circumstances or obligations that apply. It is the debtor’s responsibility to prove that repaying their student loan debt would cause undue hardship and now allow the debtor to maintain a minimal standard of living. The standard to prove this is strict, and the rule only applies to those with the most limited resources and options.
An experienced bankruptcy attorney can help you determine if you have an undue hardship case to make. We understand the types of facts which may constitute an undue hardship. However, even if this rule does not apply to you, Omaha attorney Burke Smith may be able to help you with other options. This may include having your student loan payments reduced, consolidated, or delayed. Also, filing for a Nebraska bankruptcy may assist you with stopping a wage garnishment or preventing a foreclosure on your home. Call our Omaha office today to learn how Burke and Dana Ulrich can be assistance.
Attorneys helping Omaha residents raise appropriate defenses to student loan debts
On rare occasions, a person might be able to defend their student loan debt, and argue in court that they should not have to pay. One instance where this may be appropriate is if the student loan was fraudulently taken out in your name. Another instance is if your educational institution closed prior to you acquiring the degree you had taken the loan out to earn. There have been other instances where a vocational or trade school was shown to utilize deceptive business practices and did not provide the level of training advertised. This would also be an appropriate defense against paying back the money used to acquire such an education. If any of these situations apply to you, it may be possible to discharge your debt. Contact our office today and speak to a qualified and knowledgeable bankruptcy attorney.