Bankruptcy and Student Loans

Many students rely on student loans to complete their college degree. They depend upon their job and salary to pay enough for them to repay the debt. At the end of your college career, you easily could have more than $20,000 of debt to pay off. But what do you do if you are not making enough money to cover the debt and your other living expenses?

Bankruptcy Attorney in Tampa, Florida – Peter Zooberg – (813) 990-7944.

Bankruptcy Only In Some Situations

Many people think they can file for bankruptcy to avoid paying their college loans. But this is often not the case. Federal law states that student loans may not be discharged in bankruptcy.

Bankruptcy only will help you directly with your student loan debt if you can show that you are experiencing ‘undue hardship’ due to your debt obligations.

That determination must be made through a court action. This is difficult to obtain. It is up to the court entirely whether the standard has been met. Unfortunately, the US bankruptcy code does not provide a strict definition of undue hardship. So it is up entirely to the judge’s discretion.

To attempt to have your student loan discharged based upon hardship, you will need to file a petition or adversary proceeding to arrive at a determination.

The Brunner Test and Undue Hardship

Judges typically use what is called the Brunner test to determine if you are under undue hardship. The Brunner test requires a determination that:

• The debtor cannot maintain a minimal standard of living for himself and his dependents if he must pay the student loans
• Other mitigating circumstances exist that this situation will persist for much of the repayment period of the student loans
• The debtor has made substantial good faith efforts to pay the loans

If you are able to prove undue hardship, your student loans may be canceled. This usually requires the services of an excellent attorney.

The good news is that even if bankruptcy will not cancel your student loans, there still may be other options

Contact An Attorney Today

Are you considering bankruptcy in Florida? Do you have student loans? This could be a stressful and confusing time for you, and we are ready to help you to decide what to do. Call our office at (813) 990-7944 to speak to a bankruptcy lawyer in Tampa.

See also…

• Florida Repossession Laws
• Foreclosure Defense Attorney

source https://www.tampabankruptcylawyers.us/student-loan/

Florida Consumer Collection Practices Act – Brief Overview

Anyone who is experiencing financial difficulties in Florida should understand the Florida Consumer Collection Practices Act, or FCCPA.

This is a state law that protects you from unfair debt collection practices. The FCCPA specifically states the abusive debt collection practices that are illegal. The law also provides legal remedies for those who have experienced illegal creditor harassment.

The FCCPA is an additional law for Floridians on top of the protections afforded under the federal Fair Debt Collection Practices Act (FDCPA). The major addition under the FCCPA in Florida is that it protects you from harassment from both the original creditor and third-party debt collectors.

What Debt Collection Tactics Are Illegal?

In Florida under the FCCPA, it is illegal for your creditors to do the following:

• Call or mail you directly after they know you have retained an attorney
• Call you early in the morning or late at night
• Contact you on the job after you have told them not to do so
• Contact neighbors and co-workers about debts you supposedly owe
• Engage in the use of profane or abusive language when contacting you
• Pretending that they are attorneys
• Filing a legal action against you in a distant location to make it difficult to defend
• Threaten you with legal action, or threaten you with jail time for not paying a debt

If a creditor engages in these activities, it is illegal, and you should talk to an attorney about it.

Bankruptcy – Stop Creditor Harassment In Its Tracks

Filing bankruptcy is a serious financial decision, but it does have substantial benefits if you decide with your attorney to go forward. After you have submitted the legal paperwork to the local bankruptcy court, an automatic stay is issued. This is essentially a restraining order against all creditors. It prevents them from any further contact to seize property, recovery money, or put liens on your property. Your creditors must obey the requirements of both the FDCPA and the FCCPA.

Bankruptcy can provide you with tremendous relief, as you will no longer be harassed by creditors.

Florida Bankruptcy Attorney

Our Tampa, Florida law firm sues creditors for harassing our clients against the law. Under the FCCPA, if the creditor treats you improperly, you may be entitled to compensatory damages from the creditor. These damages can include:

• Actual damages
• Statutory damages not more than $1000
• Potential punitive damages
• Attorney’s fees and court costs

Call (813) 990-7944

If you are in financial distress and are being harassed by creditors, please contact our Tampa legal practice. We can provide you with more information about potential bankruptcy options.

source https://www.tampabankruptcylawyers.us/fccpa/