Bankruptcy, Foreclosure, Student Loans and Hiring an Attorney
Consider the following when seeking out an attorney. A bankruptcy law firm that consists mainly of foreclosure lawyers would naturally be a great choice to receive excellent advice and representation against foreclosure. The same firm wouldn’t necessarily be the best attorneys for help with student loan workouts. At the same time, a law firm who focuses mainly on bankruptcy, but does not do other types of debt relief such as debt settlement, fighting lawsuits, etc, might not be the best law firm for a foreclosure defense case. So consider the perceived “specialty” of the attorney when hiring.
Any borrowers who has a State or federal license, such as a lawyer, doctor, Realtor, or others can quickly find licenses to be in jeopardy. There is some bright news within the issues on federally-backed loans in that these also have the greatest amount of options as well as the greatest extent of student loan borrower rights. Additionally to deferment and additionally to forbearance, options for borrowers include consolidation, income repayment, defaulted student loan rehabilitation, and even student loan forgiveness. Additionally, student loans can in some rare cases be administratively removed or “discharged.” Once more, it’s important to realize that the typical bankruptcy attorney will not necessarily have a complete understanding of these student loan options. For this reason, and because many others are not necessarily versed in these situations, the options are never clearly and articulately outlined for the student loan borrowers.
Can Bankruptcy Fix Private Student Loans?
Private loans come from lenders that are private lenders. These are not federally insured or backed by the federal government. For this reason, the counter is true in that the remedies for federal loans that were discussed previously are not available in the case of private student loans. State laws are the laws which are governed regarding the enforcement of private student loans. Typical contractual statute of limitations generally come into the story and state law also may include defenses or remedies. Generally, in order to enforce the collection of a private student loan will be similar in many respects to credit cards.
Bankruptcy Attorneys Can Stop Foreclosure Alongside Other Debt.
With the situation being dire regarding student loans, typically bankruptcy is not the best option when student loans are the only concern. The bankruptcy attorney typically wants to see the kind of debt that can discharged. Simply stopping a creditor from collecting on a student loan won’t necessarily result in what would be considered a good resolution in a bankruptcy case.