We have all heard that student loan debt is a huge problem facing our nation. Students are graduating from college with thousands of dollars in student loan debt and then they struggle to find a decent paying job in their chosen field. To add salt in this wound, the graduates are also being harassed by debt collectors.
The debt collection industry is increasingly focusing on student loan debt. Not only is the mortgage crisis coming to an end which is slowing down the collection efforts on those types of loans, but student loans are difficult to discharge in a personal bankruptcy filing. In order to eliminate your student loan debt in a Chapter 7 or Chapter 13 case, you must prove an “undue hardship,” which is a tough standard to meet. As a result, the debt collection agents understand that there is no real option for a student loan borrower to obtain relief from their harassing and abusive tactics.
The government has made some small strides in deterring abusive conduct by student loan debt collectors, but it is obvious that more extensive efforts are necessary. For instance, it is time for the burden placed on students attempting to discharge their student loan debt in a bankruptcy filing to be lowered.
While there is not a simple answer for graduates who are facing an overwhelming amount of student loans, if you are being harassed by debt collectors, let us help. We can look to see if a debt collector is violating your rights under the law in its collection efforts. If so, we may be able to file a lawsuit against the collector seeking a monetary judgment. Additionally, while you may not qualify to discharge your student loans in bankruptcy, filing a case can still provide you relief. Not only will the automatic stay prevent further collection efforts against you, but you may also be able to create a more manageable repayment plan under Chapter 13.
If you have questions about filing for bankruptcy protection or how to handle aggressive debt collectors, we have the answers. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.