How to file an adversary proceeding for student loan bankruptcy

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As most people dealing with debt know, there are many different kinds of debt and some types are more difficult to eliminate in bankruptcy than others. Student loan debt is one such debt that’s not automatically discharged in bankruptcy proceedings. Unfortunately, this fact has led many people to believe that student loans can’t be discharged at all. Many borrower can discharge student loan debt through bankruptcy, but it requires additional steps.

This post explains how to file an adversary proceeding for student debt bankruptcy in Oregon, and help you decide whether it’s the right move for you.

How Do You File an Adversary Complaint for Student Loan Bankruptcy?

Getting student debt discharged through bankruptcy requires filing for an adversary proceeding. An adversary proceeding is a legal action that occurs within a bankruptcy case; it’s a formal process used to address specific issues or disputes between various parties that cannot be resolved through the regular bankruptcy process.

What are the Steps to Getting Student Debt Discharged through Bankruptcy?

The first step should always be consulting with an experienced bankruptcy attorney. Bankruptcy laws are extremely intricate, and this process is no exception. Need help finding a student loan lawyer? Check out our blog on how to hire the best student loan lawyer for you

If you and your bankruptcy attorney believe your case meets the criteria, you should proceed with these steps:

  • File the complaint: The complaint is filed with the bankruptcy court overseeing your case. There are specific forms and procedures you need to follow, which your attorney will be familiar with. Filing the complaint initiates the adversary proceeding and sets the legal process in motion.
  • Serving the parties involved: After filing the complaint, it must be properly served to all relevant parties, including the student loan lender or servicer. This ensures that everyone involved is aware of the legal action and can respond accordingly.
  • Responses and negotiations: The opposing party will respond to your complaint. This usually leads to negotiations or settlement discussions. Your attorney will guide you through these interactions and help you make informed decisions about potential resolutions.
  • Court proceedings: Depending on the progress of your adversary proceeding, you might need to attend a deposition and trial. Your attorney will represent your interests and present your case to the judge.
  • Decision rendered: The judge will ultimately make the decision. If the court rules in your favor, your student loans will be fully discharged.  The judge can also order a partial discharge if it appears you can pay back some but not all of your student loans.

How Do They Decide Whether to Discharge Your Student Debt?

The judge will make a decision based on your specific situation. The decision is based on three main guidelines:

  • Are you unable to maintain a minimal standard of living for you and your dependents? This is determined by current income and expenses.
  • Is there a likelihood you will be able to pay back your loans in the future? Factors the judge will consider include disabilities, long-term unemployment, and other adverse circumstances.
  • Have you made a good faith effort to repay your loan up until this point? If you’ve enrolled in an income-driven repayment plan, applied for forbearance or forgiveness programs, or consolidation, this can be used as evidence that you have made a good faith effort to pay.

Are You a Candidate for Student Loan Debt Discharge through Bankruptcy?

If student debt is crushing your ability to become financially independent, you may be a good candidate for student debt forgiveness. Of course, as with any possible legal strategy, it’s vitally important to get an opinion from a lawyer with specialized knowledge – in this case, an experienced bankruptcy attorney. An lawyer who focuses his practice on bankruptcy issues will understand the ins and outs of this particular area of law and can review with you some important considerations before you move forward.

While discharging student loans through bankruptcy is not guaranteed, taking the right steps and seeking professional guidance can increase your chances of achieving a favorable outcome and gaining relief from your student loan debt. If you’re ready to start exploring your options for filing an adversary complaint for student loan bankruptcy, give us a call today. Our experienced Oregon-based bankruptcy attorneys are ready to answer all your questions.

How to Get Student Loan Forgiveness After the 2023 Supreme Court Ruling

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Are you burdened with a mountain of student debt that feels like it will never go away? Especially after the Supreme Court’s recent ruling on the student loan forgiveness plan, millions of Americans are wondering if they will ever find relief from these insurmountable loans. 

If you’re in this situation, there’s still some hope. Many people are unaware that there are several different ways they can achieve student loan forgiveness, even after the Supreme Court’s ruling. In this blog post, the debt relief experts at OlsenDaines will explain what you need to know to get rid of your student loans and find financial freedom. 

About the Supreme Court’s Ruling Against Student Loans

In late 2022, the Biden Administration announced its plan to discharge more than $400 billion in federal student loans across the country. Most borrowers would have been eligible for between $10,000 and $20,000 of immediate relief. However, a few states contested the plan and claimed it was unconstitutional, sparking a legal battle that would ultimately determine the outcome of Biden’s original plan.

The case was brought all the way up to the Supreme Court, which on June 30th reached a decision: that the President did not have the authority to automatically discharge these loans. Biden’s original student loan forgiveness plan would not be allowed to proceed.

Ways to Get Rid of Student Loans

Though the Supreme Court’s decision was disappointing for student loan borrowers across the country, that doesn’t mean it’s time to despair. Most people don’t realize that they may already qualify for these other methods of student loan forgiveness:

Filing for Bankruptcy

Historically, student loans have been considered non-dischargeable through bankruptcy. However, thanks to the Department of Education’s policy changes in late 2022, student loan discharge is more accessible through bankruptcy than ever before. The catch is that you have to demonstrate that the loans are inflicting undue hardship upon your financial situation. 

Unfortunately, there is no strict definition of undue hardship – which is why it was so challenging to use bankruptcy for student loan discharge in the first place. However, the Department of Education has established a list of 14 guidelines that can help determine whether a borrower qualifies. Some examples of factors that can contribute to undue hardship include:

  • If the borrower has a disability
  • If the borrower made a good faith effort to repay the loans
  • If the borrower’s income is below the poverty line for their state

While you don’t have to meet all the guidelines to qualify for full or partial discharge, meeting several of the criteria will increase your odds of a favorable outcome. It’s also worth noting that the process of proving undue hardship can be complex, and it’s important to have a skilled and experienced bankruptcy attorney on your side. An attorney can help you navigate the process and increase your chances of success.

 

Income-Driven Repayment Plans

Income-driven repayment plans (IDRs) use your family size and discretionary income to determine an appropriate monthly payment amount. For many people, the IDR can significantly lower monthly payment amounts. And, IDR plans offer complete loan cancellation after making a certain number of qualifying payments – typically over the course of 20 or 25 years. Some of the most common IDR plans include:

  • Pay As You Earn (PAYE)
  • Revised Pay As You Earn (REPAYE)
  • Income-Based Repayment (IBR)
  • Income-Contingent Repayment (ICR)

The main differences between these plans are the percentage of your discretionary income required in each monthly payment and the amount of time you must make payments before qualifying for forgiveness. 

In addition to the four IDR plans above, the Biden Administration has also announced a new plan called the Saving on a Valuable Education (SAVE) plan. This plan has the lowest monthly payment of any available repayment option and offers a number of other benefits to make your debt more manageable. SAVE is rolling out in the summer of 2023 and goes into full effect beginning 2024.

Public Service Loan Forgiveness

To provide relief for full-time employees of government services or non-profit organizations, the federal government also offers Public Service Loan Forgiveness (PSLF). This allows the student loans to be forgiven after 120 qualifying payments, or just 10 years, while working for a qualifying public service organization. Some examples of qualifying employers include:

  • Military service
  • Public health
  • Public education
  • Social work
  • Early childhood education
  • 501(c)(3) tax-exempt organizations

It’s important to note that the 120 payments do not need to be consecutive, but you must fill out paperwork to delineate which payments contribute toward your forgiveness plan. Additionally, not all employers qualify for PSLF. To see if your employer qualifies you for this type of loan forgiveness, use the Department of Education’s search tool for employer eligibility. 

How a Student Loan Lawyer Can Help You

Though there are several methods you can use to find relief from your student loans, the process is rarely easy. But, you don’t have to face it all on your own. At OlsenDaines, we strive to provide our clients with the information and resources they need to combat debt and find financial stability. Whether you need help determining which program is right for you or you need help navigating a bankruptcy case, our skilled lawyers have your back. 

To schedule your free legal consultation, give us a call today!

Steps To Hiring a Lawyer For Student Loan Forgiveness

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For many people in the United States, student loans are a source of overwhelming financial stress. If you are struggling to repay your debt, a student loan attorney can help you – from reaching student loan forgiveness to lowering your monthly payments, a lawyer has the expertise needed to significantly reduce your financial burden.

However, if you are already struggling to make payments on your debt, the idea of spending even more money on a lawyer may feel overwhelming. To help you determine whether a student loan lawyer is right for you, here’s what you need to know about the costs (and savings) associated with student debt attorneys.

Why Hire a Student Loan Lawyer?

A student loan lawyer is a legal professional who specializes in the laws and regulations pertaining to student debt. They can provide guidance and representation to borrowers who are overwhelmed with their payments, facing predatory lending practices, or dealing with other debt-related problems. Student loan lawyers can help by:

  • Combatting predatory lenders: If you suspect you are the victim of predatory lending practices, an attorney can help hold your lender accountable. They know the ins and outs of consumer protection laws and can pursue remediation from unfair or illegal lending situations.
  • Negotiating settlements: An attorney can work with your lenders to make your debt more manageable. They may help lower interest rates, map out an achievable payment plan, and find other ways to help relieve the burden of your debt. 
  • Defending against lawsuits: In some circumstances, a private lender may take legal action against you. A student loan lawyer can help you navigate the situation and defend you in court for a more favorable outcome.
  • Navigating forgiveness programs: Many people don’t realize that they may qualify for a student loan forgiveness program. An attorney can examine your situation to help you find and qualify for student debt forgiveness.
  • Discharging student loans through bankruptcy: Depending on your situation, you may be able to discharge your student debt through bankruptcy. Thanks to new policy updates by the Department of Education, student loan forgiveness is more accessible using this approach than ever before.
  • Dealing with debt collectors: Debt collection agencies can be incredibly difficult to deal with. A lawyer will not only protect you against collector misconduct, but they can also handle communications to make your situation less stressful.

How Much Does it Cost to Hire a Student Loan Lawyer?

The cost of a student loan lawyer can vary significantly, often ranging between a few hundred dollars to a few thousand. How much you will pay typically depends on which fee structure the lawyer uses. The most common fee structures include:

  • Hourly rates: When you pay the lawyer an hourly rate, it can be challenging to predict exactly how much their services will cost in total.
  • Flat fees: This is when you pay the lawyer a set amount for their services, which can be helpful if you want to know exactly how much their services will cost before starting.
  • Contingencies: This is where the lawyer is only paid if they reach a desired result. It is most commonly used for class action lawsuits.
  • Hybrid plans: A lawyer may charge both a flat fee and a contingency. Similar to a regular contingency, this is most common in class action lawsuits.

Can Hiring a Student Loan Lawyer Save Me Money?

Though hiring a student loan lawyer may seem costly, doing so could save you thousands of dollars in the long run. By relieving some – or all – of your student loans, they can drastically lower your monthly payments, help you combat wage garnishment, and overall make your debt more manageable. The money you invest in a student loan attorney today can certainly save you a lot in the future.

Get a Free Legal Consultation

Considering investing in a student loan lawyer, but want to learn more about the process or costs? Get a free legal consultation from the experts at OlsenDaines! For over 40 years, we’ve been representing residents in Oregon with the goal of educating, informing, and empowering our clients. Your financial recovery is our top priority, which is why we offer affordable rates and disclose all of our fees from the very beginning. If you’re ready to learn more or get started, call us today to schedule your consultation.

How to Hire the Best Student Loan Lawyer for You

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Did you know that the total student loan debt in the United States has surpassed $1.7 trillion? This massive debt burden weighs on the shoulders of millions of individuals trying to secure a better future through higher education. If you’re one of them, you know that student loan debt is more than just a strain on your checking account. It’s a daily source of stress and confusion, too – and that’s if everything is going according to plan. If complexities arise, you may find yourself in need of a lawyer to help navigate through the red tape and explain all of your options to you. But how are you supposed to know how to hire the best student loan lawyer for you?

In this blog, we’ll discuss some of the factors you should consider when looking for a student loan lawyer. Our mission is to provide you with the right information to help make an informed decision.

What Can a Student Loan Lawyer Do for You?

Student loan debt can feel insurmountable. Finding the right student loan lawyer can feel like a beacon of hope and relief. So, what can a student loan attorney do for you?

First and foremost, a student loan lawyer will fight for you and advocate for your rights and best interests. They have the expertise to review your loans, determine if there are any violations or predatory practices, and create a legal strategy to move forward. Frequently, student loan lawyers will negotiate on your behalf with lenders to secure more favorable terms or lower interest rates. They can also represent you in legal proceedings if the need arises. They will pursue any and all options to have the debt dismissed or forgiven, if those are possibilities.

A student loan lawyer is a powerful ally who will relentlessly champion your cause and work towards relieving the burden of your student loans.

What Do Student Loan Lawyers Specialize In?

Student loan lawyers possess a wealth of knowledge in how to navigate the intricate landscape of student loan laws and regulations. Of course, each lawyer you speak with will have their own areas of specialization, so it’s crucial to find one whose expertise aligns with your specific needs and goals.

Here are some of the legal service areas that student loan lawyers excel in:

  • Loan Forgiveness: Student loan lawyers can help you explore and pursue various loan forgiveness programs and explore options for getting your debt dismissed.
  • Loan Repayment Plans: Repayment plans can be complicated. A good student loan lawyer can navigate the complexities and help you understand and select the most suitable option for your financial circumstances.
  • Loan Disputes: If you’re having problems with your loan servicer, such as misapplied payments, billing errors, or incorrect loan balances, a student loan lawyer can advocate on your behalf and resolve these disputes.
  • Debt Collection Harassment: Student loan lawyers protect your rights and defend you against aggressive debt collection tactics.
  • Administrative Hearings and Appeals: Wage garnishments and tax refund offsets are frequently leveraged against borrowers. A student loan lawyer can represent you in hearings and appeals processes.
  • Bankruptcy and Student Loans: Student loan lawyers can offer guidance on bankruptcy proceedings, exploring options like undue hardship discharge, or developing a repayment plan within a bankruptcy framework.

When Should You Hire a Student Loan Lawyer?

Student loan debt should not interfere with your life or make your personal finances untenable. If it does, you should consider hiring a student loan lawyer. By enlisting their expertise, you gain an advocate who will fight for your rights, provide you with comprehensive legal advice, and equip you with the tools needed to overcome the challenges that student loans pose. At the very least, they can give you a better idea of the options available.

Am I Eligible for Student Loan Forgiveness Programs?

Eligibility for student loan forgiveness programs can vary depending on factors such as your profession, income, loan type, and repayment history. Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and Income-Driven Repayment (IDR) plans are just a few examples of the options out there. 

To truly understand if you qualify for any of these programs, it’s highly recommended to consult with a knowledgeable student loan lawyer. They can assess your unique situation and guide you towards the best course of action.

How Much Does a Student Loan Lawyer Cost?

The fees charged by student loan lawyers will depend on several factors, including the complexity of your case, the services required, and the attorney’s experience and reputation. Setting up a consultation with an attorney can give you a more concrete answer. 

During the consultation, we will take the time to understand your needs, evaluate the intricacies of your case, and provide you with a clear understanding of the potential costs involved. Our goal is to be transparent and work with you to find a solution that aligns with your budget and provides the dedicated legal support you deserve.

The Path to Financial Freedom Starts Here

In the quest to free yourself from the burdens of student loans, finding the best student loan lawyer can be key to unlocking a brighter future. At OlsenDaines, we pride ourselves on being tireless advocates who are committed to fighting for your rights.

Call us today to schedule a consultation and let us show you firsthand how our unwavering commitment to your cause can make all the difference.