As seasoned Alabama bankruptcy attorneys, we know first-hand that a large number of our financially-struggling clients have been living with the grim reality of heavily-burdening student loans for decades.
Let’s take a look at what non-dischargeable debt is, how these loans are related to it, and what our current U.S. President has just done about it.
A Quick History About Non-Dischargeable Student Debt
The American Bar Association breaks down why so many students from poor families across the United States (who may have gone to college as far back as the mid-1990’s or further) have more than likely been weighed down by their student loans for much of their adult lives.
This is because, basically, if you received a student loan before mid-October of 2005 and a nonprofit organization had anything to do with funding it, then your loans would automatically be unforgiven. Unfortunately, many lower-to-middle income students did rely on loans and grants that these organizations did take part in.
In many cases, the degree that these students attained didn’t match up with the job they were currently working, and their current occupation paid much less than they expected.
Biden’s Plan to Eliminate Non-Dischargeable Student Debt
In late August of 2022, The White House released a fact sheet that reported details about President Joe Biden’s plan to eliminate tens of thousands of dollars of student debt. This relief is to be for students who are middle to low-income, and if you are a student who is currently in college today, then you qualify to get this relief.
Non dischargeable debt is debt that is not supposed to be eliminated even if a person files for bankruptcy. But, now, a knowledgeable bankruptcy attorney can assist you as you file the applications for this relief with a much better chance of a positive outcome in your favor.
Contact Your Trusted Alabama Bankruptcy Lawyer Today
Showing “undue hardship” from enormous student debt is what your bankruptcy lawyer will do for you in court. That being said, don’t hesitate to contact us today at The Elmer Firm for free consultation.