Panama City, Florida – For many, figuring out how to pay off debt of any kind can be maddening. However, for those with federal student loan debt, there might be a light at the end of the tunnel. Debt assistance professionals, Lewis & Jurnovoy, are here to highlight some possible adjustments to student loan bankruptcy regulations.
It can be difficult to pay off student loan debt through bankruptcy. First, it has to be proven in courts through “adversarial proceedings” that they qualify as “undue hardship”, which can be difficult as the standards and tests for proving undue hardship differ from jurisdiction to jurisdiction. . In addition, adversarial proceedings can take a short time and, depending on the type of legal counsel engaged by the borrower, be costly, which may ultimately be against a claim for undue hardship. .
There is, however, a bill called the Fresh Start Through Bankruptcy Act, sponsored by Sen. Richard Durbin and Sen. John Coryn, which was unveiled earlier this year that would “eliminate the undue hardship standard for federal student loan borrowers.” that have been in the process of being reimbursed. on their loans for at least the previous 10 years, allowing these borrowers to eliminate their federal student loan debt as easily as any other type of releasable consumer debt. No adversarial procedure would be required. The 10-year waiting period would be similar to earlier legal standards for bankruptcy for student loans decades ago, before Congress passed legislation establishing the undue hardship standard. Such waiting periods were designed to prevent fraud (for example, when borrowers try to pay off student loans right after graduation). Although the Fresh Start Through Bankruptcy Act enjoys bipartisan support, its fate is currently uncertain as Congress now focuses on other pressing issues, including the adoption of President Biden’s signature infrastructure and plans. social spending law, âaccording to a Forbes article.
Lewis and Jurnovoy have provided bankruptcy assistance and legal advice for more than 25 years in Florida. Lawyers at the trusted bankruptcy firm offer free bankruptcy consultations to help determine the most beneficial option for each client. For more information regarding bankruptcy help or debt consolidation, call Lewis and Jurnovoy on (850) 913-9110 or visit them online at www.LewisandJurnovoy.com.
For more information on Lewis & Jurnovoy, PA – PCB, contact the company here:
Lewis & Jurnovoy, PA – PCB
2714 15th Street West
Panama City, Florida 32401