Do not Consolidate Federal and State Student Loans in you can discharge them in Bankruptcy!

The Law Offices of Neil E. Colmenares, P.C. are attorneys who concentrate in the complex area of Bankruptcy Law with a focus on helping individuals discharge student loans. Our Student loan Bankruptcy Attorneys will help you eliminate Federal and State Student Loan Consolidation programs when possible. Bankruptcy Student Loan Consolidation Program Lawyers in Queens, Nassau & New York will see if Bankrupcty can help you. We are Board Certified in Consumer Bankruptcy Law by the American Board of Certification.

In a recent case, we were able to discharge a substantial sum of medical school debt for one of our clients!* There is no amount of student loan liability that is too small to discharge.

If you are unable to pay your student loans, are struggling to make ends meet to avoid garnishment from the government, student loan relief through Bankruptcy may help you discharge those student loans (get rid of student loan debt).

The following are the general requirements for discharging student loans for the New York area. Please note, these are general guidelines which should be reviewed with your Bankruptcy Attorney and Lawyer before taking any action.

Please note, the standard for discharging student loans in Bankruptcy in high. Although difficult, discharging student loans is not impossible.

Standard for Determining Whether a Student Loan Obligation Should Be Discharged (Applicable in the Second Circuit)

(1) The debtor’s current level of income and expenses and whether a minimal standard of living can be maintained by the debtor and dependents if the debtor must repay student loans;

(2) Additional circumstances that might suggest that debtor’s current financial condition would likely continue for a significant portion of the repayment period; and

(3) Whether the debtor has made a good faith attempt to repay the student loans.

Although the standard for discharging student loans remains unchanged, BACPA expands the category of debts that may be excepted from discharge as student loans to include loans from for-profit lenders if they are qualified educational loans as defined in sections 221 (d)(1) of the Internal Revenue Code (any indebtedness incurred by the taxpayer solely to pay qualified higher educational expenses. Debtors who have incurred debt for other purposes may argue the debt should be dischargeable.

This same IRC section states that in order to considered a qualified educational loan, the loan must be incurred to pay expenses for education furnished during a period when the recipient was an eligible student. So if the Debtor was not an “eligible student,” the Debtor can argue the debt is dischargeable.

Finally, Section 472 of the Higher Education Act defines what higher educational expenses are. If the Debtor expenses do not fall within these defined categories, the Debtor may argue that the debts are dischargeable.

For additional information about Bankruptcy, click here to read recent articles by Mr. Colmenares.

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Attention Bankruptcy Clients: Kindly bring in as many of the following documents to make your consultation as productive as possible.

For Homeowners:

  • A Recent Appraisal or B.P.O. (Brokers Price Opinion) not more than three months old for the property.
  • Payoff & reinstatement figures for any Mortgages, Home Equity Lines of Credit, etc.
  • If in foreclosure, bring foreclosure papers that have the bank attorney’s name and address.

Income verification received by both you and your spouse for last 7 months.  This includes pay-stubs which show all your deductions. Bring in verification for both spouses even if not filing together unless you are living apart.

Legal papers such as judgments, garnishments, frozen bank accounts, lawsuits, criminal cases, eviction notices, divorce, child support, etc.

Most recent bill for all your debts including credit cards statements, medical bills, student loans, etc.

 

Attorney Advertisement. *Prior results do not guarantee a similar outcome. We are a debt relief agency and assist people to file for relief under the Bankruptcy Code.

This web site and the related links are purely a public resource of general information and it is not intended to be nor is it a source of legal advice. You should consult an attorney for advice regarding your specific situation. This information is generalized and should not be relied upon as legal advice. This communication does not create an attorney-client relationship.

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