{"id":3817,"date":"2022-11-21T08:46:57","date_gmt":"2022-11-21T16:46:57","guid":{"rendered":"https:\/\/provencherandflatt.com\/?p=3817"},"modified":"2023-09-04T06:08:36","modified_gmt":"2023-09-04T13:08:36","slug":"student-loans-dischargeable-with-bankruptcy-santa-rosa","status":"publish","type":"post","link":"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/","title":{"rendered":"Eliminate Your Student Loan Debt Through Bankruptcy"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Can_you_discharge_student_loans_in_bankruptcy\"><\/span>Can you discharge student loans in bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-663e8d856a115\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-663e8d856a115\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#Can_you_discharge_student_loans_in_bankruptcy\" title=\"Can you discharge student loans in bankruptcy?\">Can you discharge student loans in bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#Santa_Rosa_Bankruptcy_Attorney_answers_questions_about_the_new_ruling\" title=\"Santa Rosa Bankruptcy Attorney answers questions about the new ruling\">Santa Rosa Bankruptcy Attorney answers questions about the new ruling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#What_Is_the_Debt_Discharge_Process\" title=\"What Is the Debt Discharge Process?\">What Is the Debt Discharge Process?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#What_Criteria_for_Student_Debt_Wipe-Off_Will_the_Department_of_Justice_Consider\" title=\"What Criteria for Student Debt Wipe-Off Will the Department of Justice Consider?\">What Criteria for Student Debt Wipe-Off Will the Department of Justice Consider?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#Current_Ability_to_Pay_Student_Loans\" title=\"Current Ability to Pay Student Loans.\">Current Ability to Pay Student Loans.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#Good_Faith_Efforts\" title=\"Good Faith Efforts.\">Good Faith Efforts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#Future_Ability_to_Pay_Debts\" title=\"Future Ability to Pay Debts.\">Future Ability to Pay Debts.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#What_Do_I_Need_to_Know_About_Discharging_Student_Loans_in_Bankruptcy\" title=\"What Do I Need to Know About Discharging Student Loans in Bankruptcy?\">What Do I Need to Know About Discharging Student Loans in Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/provencherandflatt.com\/student-loans-dischargeable-with-bankruptcy-santa-rosa\/#Where_Do_I_Find_a_Student_Loan_Attorney\" title=\"Where Do I Find a Student Loan Attorney?\">Where Do I Find a Student Loan Attorney?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>We\u2019ve got great news for you! Student-loan holders now have a new path to <a href=\"https:\/\/provencherandflatt.com\/bankruptcy-basics\/\">freeing their debt through bankruptcy<\/a>! If you\u2019ve been worrying about how you can pay off your debts, read on to know if this applies to you!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Santa_Rosa_Bankruptcy_Attorney_answers_questions_about_the_new_ruling\"><\/span>Santa Rosa Bankruptcy Attorney answers questions about the new ruling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the past, discharging student loans is an almost impossible hurdle in bankruptcy. The Department of Justice vigorously fought against any lawsuits that target getting these types of debts discharged.<\/p>\n<p>But on November 17, 2022, President Biden announced a significant change in how student loans will be treated. The goal is to make the process more consistent and fair. The Department of Justice attorneys will now <strong>evaluate each case against certain criteria<\/strong> to determine if a full or partial discharge is possible. The ultimate decision will still rest with the bankruptcy Judge.<\/p>\n<p>We are excited about the prospect that this new announcement will allow us to help people escape their crushing student loan debt. In this article, we will answer these related questions:<\/p>\n<ul>\n<li>What is the debt discharge process?<\/li>\n<li>What are the criteria to qualify for student debt wipe-off?<\/li>\n<li>What do I need to know about discharging student loans in bankruptcy?<\/li>\n<li>Where can I find a student loan attorney that can help me?<\/li>\n<\/ul>\n<p>If you want to eliminate your debt, <a href=\"https:\/\/provencherandflatt.com\/\">our Santa Rosa bankruptcy attorney<\/a> is here to help! Call our law office today to learn more!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_the_Debt_Discharge_Process\"><\/span>What Is the Debt Discharge Process?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In summary, here\u2019s what happens after you submit all the relevant paperwork:<\/p>\n<ol>\n<li>The Justice Department, with the help of the Department of Education, reviews the available information<\/li>\n<li>They will look at the factors relevant to your undue-hardship inquiry<\/li>\n<li>Based on that assessment, they will determine whether to <strong>recommend<\/strong> that the bankruptcy judge discharge your debts.<\/li>\n<\/ol>\n<p>Note that the Justice Department attorneys will only make the recommendations. Ultimately, the bankruptcy judge decides whether your debts can be discharged. However, this guideline does provide a clearer and fairer process for evaluating student debt.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Criteria_for_Student_Debt_Wipe-Off_Will_the_Department_of_Justice_Consider\"><\/span>What Criteria for Student Debt Wipe-Off Will the Department of Justice Consider?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Justice Department provided a new process for student loan bankruptcy discharge cases. Before the Education and Justice departments recommend discharge, they will consider the following criteria:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Current_Ability_to_Pay_Student_Loans\"><\/span>Current Ability to Pay Student Loans.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Using existing standards developed by the IRS and the information you provide, the Justice Department attorney will calculate your expenses and compare those to your income. If the expenses equal or exceed your income, the Department will determine that the debtor lacks a present ability to pay.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Good_Faith_Efforts\"><\/span>Good Faith Efforts.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In determining what courts call the \u201cgood faith\u201d standard, the Department will focus on objective criteria reflecting your reasonable efforts to earn income, manage expenses, and repay the loan. The Department attorney will consider, for example, whether the debtor contacted the Department of Education or their loan servicer regarding payment options for their loan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Future_Ability_to_Pay_Debts\"><\/span>Future Ability to Pay Debts.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Department will then assess whether your inability to pay will persist in the future. The Department attorney will presume your financial circumstances are not likely to change if certain factors are present. These factors include<\/p>\n<ul>\n<li>Retirement age,<\/li>\n<li>Disability or chronic injury,<\/li>\n<li>Protracted unemployment history,<\/li>\n<li>Lack of degree, or<\/li>\n<li>Extended repayment status.<\/li>\n<\/ul>\n<p>Where such factors are not present, the Department attorney will assess the facts showing whether your current inability to pay is likely to persist.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Do_I_Need_to_Know_About_Discharging_Student_Loans_in_Bankruptcy\"><\/span>What Do I Need to Know About Discharging Student Loans in Bankruptcy?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here are the five points you need to note:<\/p>\n<ul>\n<li>This guidance only applies to federal student loans.<\/li>\n<li>You still need to file for bankruptcy to discharge your loans.<\/li>\n<li>You must file a lawsuit against the Education Department in bankruptcy.<\/li>\n<li>You have to complete a borrower-attestation form with your request<\/li>\n<\/ul>\n<p>There are criteria the Justice Department attorneys will consider before recommending the discharge of your debts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Where_Do_I_Find_a_Student_Loan_Attorney\"><\/span>Where Do I Find a Student Loan Attorney?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you find yourself in deep debt from your student loans, you may be hesitant to hire an attorney. After all, it\u2019s another expense on top of your already enormous financial obligations. However, the costs of not hiring an attorney can be greater than the savings from skipping the attorney fees. If you cannot successfully file your petition, you\u2019ll still be stuck with your student loan debt.<\/p>\n<p>Don\u2019t let that happen to you. If you live in California, <a href=\"https:\/\/provencherandflatt.com\/bankruptcy\/\">our experienced Santa Rosa bankruptcy attorney<\/a> at Embolden Law PC can help you get a fresh start and experience relief from financial burdens.<\/p>\n<p>Call our California law firm today if you\u2019re ready to take the first step at a secure financial future!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can you discharge student loans in bankruptcy? We&rsquo;ve got great news for you! Student-loan holders now have a new path to freeing their debt through bankruptcy! If you&rsquo;ve been worrying about how you can pay off your debts, read on to know if this applies to you! Santa Rosa Bankruptcy Attorney answers questions about the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":286,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[54],"_links":{"self":[{"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/posts\/3817"}],"collection":[{"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/comments?post=3817"}],"version-history":[{"count":2,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/posts\/3817\/revisions"}],"predecessor-version":[{"id":3819,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/posts\/3817\/revisions\/3819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/media\/286"}],"wp:attachment":[{"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/media?parent=3817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/categories?post=3817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/provencherandflatt.com\/wp-json\/wp\/v2\/tags?post=3817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}