Today, a considerable financial thorn in peoples’ sides can be their student loan debt, which is usually very difficult to discharge through a bankruptcy unless an individual can show these payments are causing an undue financial hardship. Even if it is determined your student loan debt constitutes a hardship, the loan company may still try to collect. If a company engages in these practices, this would constitute a violation of the bankruptcy and was the situation a client of Cleveland Bankruptcy Attorneys found herself in after a 2011 bankruptcy. As part of the previous Chapter 7 Bankruptcy, the client showed there was a hardship, had over $100,000 in student loan debt reduced to approximately $30,000 and was set up on a payment plan based on this amount. Unfortunately, after some time, she began receiving collection calls and notices claiming the full $100,000 was still outstanding.
In an effort to clear this matter up, once and for all, the woman contacted attorney Cleveland Bankruptcy Attorneys, who reached out to the loan company and advised them they were violating the terms of the bankruptcy agreement. After strategic negotiations, the loan company admitted to the transgression, paid the client a monetary settlement, but perhaps more importantly agreed to forgive the remaining $30,000, unburdening the client of any further financial responsibility.
Prior results do not guarantee a similar outcome in your case. Individual results may vary based on the facts, injuries, jurisdiction, venue, witnesses, parties, and other factors. The results and client testimonials provided are not necessarily representative of the results obtained by all clients or their satisfaction with the firm’s services.