Hello and thank you for allowing me the opportunity to assist you.
Question: “Is there any way to get this resolved? What does she need to do to fix this.”
Answer: It sounds like your daughter may be a candidate to have the student loans discharged in bankruptcy. Generally speaking, student loans cannot be discharged in bankruptcy, but there is an exception in cases of undue hardship. If your daughter is disabled and cannot work, then it sounds like she may have a good case. Of course, her credit will be ruined in the short term, but within a few short years, her credit will be repaired and she will no longer have the student loan burden.
In order to have the student loans dismissed, she’ll need to file for bankruptcy, and then file an adversary proceeding, which is basically a mini-lawsuit within the bankruptcy. The mini-lawsuit will be conducted for the purposes of proving that the student loans are an undue hardship and should be discharged.
As you can imagine, this can be rather complicated. Therefore, she is best off hiring a local bankruptcy attorney. It may cost a couple of thousand, but in the long run it will be worth it. Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.
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DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the State of Maryland. Accordingly, by continuing in this discussion and/or by “accepting” my answer you acknowledge that (1) we have not formed an attorney-client relationship, (2) my answer is general information only and is not legal advice, and (3) you should not rely on my answer in undertaking any course of action without first consulting with an attorney in person who can review all relevant facts.
Unfortunately, that's not possible. It would be illegal for a paralegal to draft the bankruptcy pleadings and filings. It would be considered unauthorized practice of law. Only a lawyer may do something like that.
Now, she can file the bankruptcy by herself without a lawyer (a person may always act as her own lawyer), but there is just too much room for error. I'd be fearful that she'd make a mistake and end up losing the adversary proceeding and maybe having the bankruptcy dismissed. It really should be handled by an expert. I'd encourage her to speak to a lawyer ... it's possible one would help her pro bono (i.e. free), or can allow small installments.
Have I satisfactorily addressed your concerns? If not, then please feel free to ask for clarification.
Attorney-At-Law
Licensed in Maryland
When I said paralegal I meant legal aide, sometime through the welfare system or other means. Would that be ok for her to use, if she can get one?
Polly