Philadelphia Student Loan Bankruptcy Lawyer

Philadelphia Student Loan Bankruptcy Lawyer

Student loan debt is a massive financial problem for millions of young adults and their families. If you are struggling with your day-to-day finances because of excessive student loan debt, you should know that you are not alone. You should also know that solutions may be available to help reduce what you owe, or even wipe out your debt completely. For example, you may be able to erase college debt by filing for bankruptcy with help from a Philadelphia bankruptcy attorney. Depending on the circumstances, other possibilities include debt settlement, debt consolidation, and other alternatives to bankruptcy.

While bankruptcy can help you wipe out the debts that are causing you hardship, it is unwise to tackle the filing process without assistance. Bankruptcy laws are very complex – particularly when it comes to the discharge of student loan debt – and filers in Pennsylvania must fulfill numerous requirements. Failure to meet or comply with these requirements could compromise your ability to get rid of your debts. Serious errors could even lead to the dismissal of your case.

Before you file bankruptcy in Philadelphia, make sure you have guidance from an experienced bankruptcy law firm you can trust. For a free legal consultation, call Sadek and Cooper Law Offices, LLC at (215)-545-0008 today.

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Can You Get Rid of Student Loan Debt by Filing for Bankruptcy?

There are many benefits to filing bankruptcy. For example, filing for bankruptcy immediately triggers the “automatic stay,” a period when creditors cannot initiate debt collection proceedings against you. Bankruptcy can also help you keep possessions that might otherwise be repossessed. However, the greatest advantage of filing for bankruptcy is arguably the relief from debt.

Not all debts are treated the same in bankruptcy. When a person files bankruptcy in Philadelphia, his or her debts are divided into two categories:

  1. Dischargeable debts, or debts that can be wiped out by the bankruptcy court. When the case ends, the filer’s dischargeable debts continue to exist, but the filer is no longer responsible for paying them off.
  2. Non-dischargeable debts, or debts that cannot be wiped out by the bankruptcy court. When the case ends, the filer’s non-dischargeable debts will continue to exist, and the filer will still be responsible for paying them off.

Student loan debt is normally a non-dischargeable debt, which means that in most cases, bankruptcy does not erase debts related to student borrowing. There are, however, exceptions to this rule. Depending on how much debt you owe, and how severely the debt is impacting you financially, the bankruptcy court may agree to discharge your student loan debts.

For this to occur, you must meet specific criteria referred to as the “Brunner test.” Bankruptcy courts use the Brunner test to evaluate the financial impacts of a filer’s student loan debt. If the court finds that the filer has been impacted adversely, that the situation is unlikely to change, and that the filer has made sincere payment efforts prior to filing bankruptcy, the court may agree to relieve the debt. Specifically, the filer must show the court that:

  1. The filer – or, where applicable, the filer’s dependents – cannot maintain a “minimal” standard of living because of the debt.
  2. The present situation is unlikely to change at any time during the repayment period – for example, because the debtor does not anticipate a raise or promotion.
  3. The filer has made reasonable efforts to make full and timely payments to the best of his or her financial ability.

To reiterate, bankruptcy courts in Pennsylvania generally do not discharge student loan debt. If college loan debt is the main reason you are filing for bankruptcy, it is crucial that you are represented by a knowledgeable attorney who understands how to present clear, compelling, and comprehensive evidence of the financial hardship your debt has caused. Without strategic legal representation, you are unlikely to obtain the discharge you are seeking.

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Other Dischargeable Debts in Bankruptcy

Student loan debt may or may not be dischargeable, depending on the details of the case. Debts related to income taxes also belong in this category, and require a case-by-case assessment from the court. Otherwise, dischargeable debts in bankruptcy typically include:

  • Business Debt
  • Credit Card Debt
  • Medical Debt
  • Personal Loan Debt

The following types of debts are always non-dischargeable in bankruptcy:

  • Alimony (Spousal Support)
  • Child Support
  • Non-Income Tax Debts

Philadelphia Student Loan Bankruptcy Attorneys for Chapter 7 and 13

Skillful representation can make the difference between keeping your student loan debts, and wiping the slate clean. If attending college or university has left you burdened with costly education debt, our bankruptcy lawyers can work to help you restore your finances and regain your freedom. For a free legal consultation with the Philadelphia student loan debt attorneys of Sadek and Cooper Law Offices, LLC, contact our law offices at (215)-545-0008 today.

 

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Lavern Baker
Lavern Baker
17:03 23 Feb 18
You are all super lawyers. Brad and Matt made me feel comfortable. Every one in your office so nice and just made it easy. You’re the best!
peter b
peter b
19:42 21 Feb 18
Thank you, Sadek and Cooper Law offices for your dedication on my behalf. I appreciate Matthew and Patrick and your staff and all that everyone did to support me in this legal matter. You took an embarrassing, sad experience, for me, and turned it into a successful solution without all the emotional pain expected. After dealing with a loan modification company for over eighteen months without going to an attorney first that is the biggest mistake anyone can make. The Modification Companies set out to sell you lies, broken promises and dilute the homeowner's assets with no knowledge of any kind of law. I can't stress enough stay away from Modification companies, as a Military Veteran and family man, protect you or your family best interest. Go directly to Sadek and Copper you will not regret it! This firm moves with Super speed and diligence protecting you and your family's the entire process, even after watching some of these other attorneys in the courtroom appearing to mishandled their clients’ cases before the Trustee. You made it easy and I’m finally getting my financial life back on track! Thank you for your prompt replies to me, your clear information and preparation needed when at the courthouse. I would of course recommend you to others and I am glad you were the one who had my case. Kind genuine law firm who treats you like family. God bless you all and I pray for your continued success in your field of expertise. This firm is Super Lawyers for a reason. They are the best at what they do! Pete
Doug Tinlin
Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
Jacinth Jacinth
Jacinth Jacinth
16:07 31 Jan 18
Excellent service. Brad and Matt were outstanding and friendly. They helped me through this. I’ve never met attorneys like these. Thank you!
julie njoku
julie njoku
12:29 24 Jan 18
Brad Sadek is excellent!. He understands and he's fair. You feel like you have someone fighting for you. The staff is friendly, professional, and courteous. These guys are the best at what they do !
Owen Black
Owen Black
20:14 09 Jan 18
Thanks for the great service! I would recommend this firm highly. Throughout the years I have been helped by this firm greatly and very much appreciated.
Steven Rychalsky
Steven Rychalsky
15:30 09 Jan 18
Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
Chris Kourelias
Chris Kourelias
19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
Jennyfer Santana
Jennyfer Santana
21:17 21 Dec 17
Highly Recommended. Matt & Brad assisted with my case. I felt comfortable throughout the entire process. Matt was very understanding, patient, and ensured he answered all my questions! Both great guys and very friendly! It was a pleasure working with Matt and Brad.
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