Butler County bankruptcy filers wrestle student loans

Getting rid of federal student loans in a chapter 7 filing is not an easy process. First, it requires expensive bankruptcy litigation so get your wallet out. But wait a minute- you probably don't have any extra money.

Second, you will sue the United States Government who will defend the action. An Assistant U.S. Attorney General will show up in court likely on behalf of the U.S. Dept. of Education. So do not think you will get a default judgment. Your case will be time consuming for you and your attorney.

Now, per the statute, you have to prove to the court it would be an undo hardship to repay your loan back. There are judicial opinions on the issue which establishes hurdles of standards that you must meet. Occasionally, debtors can get a partial discharge or discharge if you carry your burden of proof.

For more information, visit www.getreallylegal.com

Bankruptcy or Out of State Debt Settlement-Debt Negotiations

Many folks look at bankruptcy as a last resort option which I understand. However, that is not a reason to run headlong into something that defies your own common sense. At our free bankruptcy consultation, we listen to your questions and take the time to discuss other options including debt settlement. While our office offers debt settlement services, it is not the best option for everyone.

Here are some debt settlement tips for Cincinnati and Northern Kentucky bankruptcy and non-bankruptcy clients:

1. Debt settlement with an out of town online company or law firm that you give your bank account number to is a terrible decision! Ask anyone on the Internet re: reviews. If it was such an upstanding business, there would be offices all over West Chester, Cincinnati and Boone County! Beware of a company if it is in Florida or California, or both.

2. Unless they can settle each and every account that might sue you, then you will have wasted time and money paying debts that could have been discharged in Chapter 13 or chapter 7. In other words, they have to bat 1.000. Unless you have two or three or maybe four creditors, the odds of everyone participating and or settling are unlikely.

3. While I don’t get to see the success stories, what happens with my experienced clients is that they pay and pay and pay and then after 6-12 months one creditor refuses to work with the debt settlement company and instead sues the client! That leaves me to ask, "Who cares how many were settled successfully when 25% of your wages are being garnished for months and you now have to pay someone else to file for bankruptcy protection?" Its an all or nothing game, in my opinion.

4. What angers me is that while they are being sued, the out of state debt settlement company or "law firm" strings them along for just one more payment alleging that they are in contact with the suing creditor. However, they are not allowed to represent you in litigation if they are not licensed in Ohio-see para. 1. They have your lump sum money and you play heck trying to get it back without them taking another $2200-3000 fee to close the account.

5. Now there is a garnishment pending, and I am contacted to discuss the bankruptcy strategies and stopping the debt settlement company from raiding your bank account.

6. I understand the lure of this non bankruptcy option. See if you can find a local debt settlement company with the same business model. I bet you can't. Why do you think that is?

7. If you must go it alone, Google your debt settlement company's name(s) for consumer complaints, state investigations and criminal charges.

http://www.bankruptcylawyerincincinnati.com/ will be here to help.