South Florida Bankruptcy Lawyer

Conditions for Cancelling your Student Loans: Part 1

Things hardly ever turn out the way we predict them and you cannot always see the bumps ahead of you on the road. That being said, it is no wonder that some college graduates have a hard time understanding how they may have ended up in rough financial situation after all of their hard years of work. Before considering bankruptcy, be informed about the conditions under which your student loans can be cancelled or deferred.

Death and Disability

Unlike other debts, student loans can be cancelled by an executor of a will should the borrower pass away. All federal student loans can be cancelled if the borrower is unable to work because of an injury or illness that is expected to continue indefinitely or result in death. Likewise is the case if the borrower, the borrower’s spouse, or a dependent is injured to the point that they cannot hold a job or attend school for 60 days or more. This only applies to loans obtained before July 7, 2007.

Rehabilitation

A borrower enrolled in a rehabilitation program for the disabled can defer payments on most loans. Payment must begin to be made six months after the training ends.

Speak with a South Florida Bankruptcy Lawyer

If you are a recent college graduate who has become overburdened by failing finances, filing for bankruptcy may be the option to get you back on your feet. Contact the South Florida bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561.353.2800 to speak with an attorney today.