Loveland Bankruptcy Lawyer Explores New Legislation to Discharge Student Loan Debt

Recent developments in legislation from the Biden Administration offer hope to student loan borrowers. The experienced Colorado bankruptcy attorney suggests that student loans can be discharged through bankruptcy.

Loveland, CO: Holland Law Office is pleased to announce that the firm is ready to consult with potential clients about the option to discharge student loan debts through bankruptcy proceedings. According to the new legislation, one must send in an application that goes in front of bankruptcy court once accepted. This application will only be accepted for a short time due to the possible changes in the political landscape.

Although regulations are in a state of flux, those laboring under a mountain of debt, including student loans, may be able to discharge part or all of the debt. The Loveland bankruptcy lawyer is available for a consultation to determine whether the client may be eligible for forgiveness or discharge under the legislation.

Those who are contemplating filing for bankruptcy are not alone. Many people looking for a fresh start often look to file for bankruptcy. So many people are suffering from medical bills, student loans, and credit card debt; it is no wonder more and more people are seeking bankruptcy relief. However, filing for bankruptcy isn’t as easy as it seems. With specific deadlines and essential forms and documents all needing to be correctly filed in a timely manner, the debtor’s financial future depends on their discipline to keep up with proceedings. Even the slightest clerical error on the documents can end up canceling the entire bankruptcy process.

Additional details are available at https://www.hollandlaw970.com/ or visit their social media pages at Holland Law Office Facebook and Holland Law Office Twitter

Bankruptcy lawyers can do more than advise clients about which bankruptcy is right for them. The attorneys work with clients to ensure the delivery of pertinent documents and that items are filed correctly and promptly by the deadlines stated. On top of keeping the bankruptcy in motion from beginning to end, bankruptcy lawyers can put an end to harassing calls from unruly creditors to alleviate that stress. By entrusting bankruptcy lawyers to tackle the case, more time can be focused on financial recovery. Many bankruptcies stem from a divorce or going out of business. Focusing on those direct obstacles is essential instead of taking on the bankruptcy personally.

Unlike a credit card, medical, or other consumer debts, student loans don’t automatically disappear in bankruptcy. Debtors need to take an extra-legal, challenging and costly step known as an adversary proceeding. More people in bankruptcy are beginning to use a legal process introduced in November by the Biden administration that is supposed to make the ordeal easier, fairer, and more transparent by establishing more precise legal standards and allowing debtors to present their cases in a simplified form.

The longstanding position of prior administrations has been to fight nearly every case where a borrower sought to discharge their debt. The Department of Justice hasn’t entirely backed down. Still, in coordination with the Education Department, it has provided guidelines to its army of government lawyers on which circumstances would permit a discharge to debtors, who can now detail their financial situation on a 15-page attestation form. Since he took office, President Biden has had a broad initiative aimed at alleviating the pressure on federal student loan borrowers.

On August 22, the Biden administration opened for enrollment its new income-driven repayment plan, known as SAVE, in which borrowers’ monthly payments are tied to their income and family size. It will enable millions of borrowers to significantly cut their monthly federal payments, eventually by as much as half.

The Biden administration has wiped out debts for eligible public service workers, permanently disabled borrowers, defrauded students, and people whose schools abruptly closed while they were enrolled. More student debtors in bankruptcy may be motivated to try now that the White House’s plan to cancel up to $20,000 in federal debt has been derailed by the Supreme Court, and federal loan payments will come due again after a three-year pause.

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