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Attorney T. Lodge
Attorney T. Lodge, Attorney
Category: Bankruptcy Law
Satisfied Customers: 45
Experience:  10+ Years Experience Chapter 7 and Chapter 13 Attorney
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my student loans are in default and I just received notice

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my student loans are in default and I just received notice of wage garnishment in 20 days. how can i fight this? I looked into income contingent repayment, but it does not account for my child support and child care that comes out of my income before I receive it. can you help?
Your limited recourse here is to contact the creditor and work out an alternative payment plan. This is a situation where absent a defense you can only try to further negotiate with the creditor. Consider suggesting small payments followed by a larger baloon payment.
Customer: replied 8 years ago.
My loans are in default, why would the creditor care about working with me? they just want one lump sum payment. And if the government is about to take 15% of my income to pay them then why would they care to settle for less? I am looking more for advise on proving undue hardship, or using bankruptcy to prove undue hardship to eliminate the debt.
student loans wont be dischargeable in bankruptcy. You are correct that the lender need not work with you but if cant collect more by other means, it may be more willing to accept a revised payment plan. Obviously, it is not a certain route as you mentioned.
Customer: replied 8 years ago.
THERE IS A WAY TO GET BANKRUPTCY TO COVER STUDENT LOANS IF YOU CAN PROVE UNDUE HARDSHIP AND PASS A SERIES OF PRONGED TEST THE COURT SYSTEM IN YOUR STATE HAS TO PROVE THE LOANS FALL UNDER THIS CIRCUMSTANCE. SO, IT MAY BE RARE BUT IT IS POSSIBLE. I WAS LOOKING FOR INFORMATION ABOUT DOING THIS OR ABOUT ASKING THE DEPARTMENT OF EDUCATION FOR A WRITE-OFF. YOU HAVE NOT BEEN ABLE TO GIVE ME ANYTHING DETAILED ABOUT GOING THESE ROUTES AND HAVE ONLY GIVEN ME BASIC ANSWERS WITH INFO I ALREADY KNEW.
I will refer your question to bankruptcy counsel for further comment.
Typically, it is very rare for student loans to be considered "dischargeable" in a bankruptcy proceeding. In a Chapter 7 proceeding you (or your attorney, prefably when you have counsel) will need to file an adversary proceeding against the holder of the student loan that specifically is termed a "Motion to Determine Dischargeability."

In court, you will need to prove through evidence that you cannot maintain a minimally adequate standard of living if forced to repay the student loan. This will usually require a showing of extreme hardship (ie: severe disability, etc.).

Many of the circuits follow the standard in the Brunner case in making these decisions. Still other circuits will require a partial repayment if a partial repayment can be made without imposing substantial hardship upon the debtor.

Unfortunately, there is no magic formula in making a determination of whether your particular loan may be discharged through this type of proceeding. You are well advised to consult with a local bankruptcy attorney who may be more familiar with the practices and procedures of your local court.

Good Luck.
Attorney T. Lodge, Attorney
Category: Bankruptcy Law
Satisfied Customers: 45
Experience: 10+ Years Experience Chapter 7 and Chapter 13 Attorney
Attorney T. Lodge and 4 other Bankruptcy Law Specialists are ready to help you

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