Avoid Default on Your Student Loans

by DeLadurantey Law Office, LLC on May 6, 2014

student loansIf you are unable to meet the “undue hardship” standard for discharging your student loans in bankruptcy, you may be wondering how you can take charge of your debt. It is important to make every effort to avoid your student loans going into default. Below are a few reasons:

  • Federal student loan lenders have the ability to garnish your federal tax return (private lenders do not have this ability). This means that instead of getting your tax refund, it goes to paying your student loan debt.
  • Federal student loan lenders have the ability to garnish up to 15% of your wages without obtaining a court order.
  • Private student loan lenders must file a lawsuit and obtain a judgment against you before they can garnish your wages or bank account.

The above are all extremely damaging to your finances and could result in you being unable to pay other bills. If you cannot bring your loan current, we can help you work with your student loan lender to get your loan out of default, which is called rehabilitation.

It is also important to understand that while you may not be able to discharge your student loan in a personal bankruptcy, filing a case can still provide you relief. It can buy you some time and halt garnishments. It can also help you eliminate some of your other debt, which will make managing your student loans easier.

We can help you explore all of your available options for getting your student loan debt under control.

If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC,at (414) 377-0518. We serve clients primarily in the areas of student loan law, Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need. Visit our web site and like us on Facebook.

 

 

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