I have represented individuals in bankruptcies for many years, and many of these debtors are also burdened by Student Loan Debt. In Maryland, filing bankruptcy does not usually result in discharge or reduction of Student Loan Debt. The usual mantra from bankruptcy attorneys in Maryland is, “sorry, I can’t help. Bankruptcy won’t discharge your Student Loan Debt.” But, I was growing tired of that line and the fact that many people were left without help.
So, I attended seminars to try to give people solutions. Every case is different and negotiating the debt is often a fact-driven process. Negotiations can drag out for months at a time and I write long emails that explain the exigent and compelling circumstances of my client. There are many pages of documents to be reviewed and issues to litigate. Yet, I have seen real opportunities to help debtors saddled with these loans and with the low credit scores that result from the defaults on the debt.
Recently, I represented a woman who was being sued for approximately $60,000.00 based on the principle of the loan, accrued interest, late fees, etc. After almost a year, we convinced the lender to accept $12,500. My client was able to pay this amount in a lump sum and put the whole matter behind her!
Obviously, every case is different and this reduction resulted from the special circumstances that I highlighted to the Loan company attorney. My client will have to pay taxes on the part of the loan that was forgiven. But, we were able to bring some sanity back to this college graduate who is in a Masters’ program and allow her to move forward with her life.
It always feels wonderful to make a difference in someone’s life by helping solve a legal problem. What the compelling circumstances that will allow me to help you with your Student Loan Debt?
For more information about how I can help, get in touch with me today.