In life, there really are unfortunate circumstances that we have no way of preventing. If a student trying pay for his or her student loan debts suddenly face unexpected events that incapacitates him or her to continue fulfilling such tasks, what are available tools to help him or her cope with such drastic changes?
If you are undergoing a similar case, then the following information would greatly help you.
There is a very few number of ways by which a student can be spared from paying his or her loan debts. Filing bankruptcy is one, though this is almost unheard of. There is only one unique exemption for being liberated from the repayment obligation. This exemption, called ‘undue hardship’ is only considered if concrete evidence is given that repaying the debt would be impossibly hard on your part.
Because this claim will free you from paying your loan obligations, granting it entails painstaking effort on both your end and the lender’s. On your part, you have to present substantial proof of your incapability to repay the debt. In doing this, you need to present to the court important documents such as financial statement of your income and general expenses, a projection of the period within which your financial problem is likely to persist, and a testimonial on the constant efforts you have given to repay the loan.
On the part of the lender, they need to scrutinize every detail to ensure that the claim is not fraudulent. They would try to present counter-evidence if there are any, to ensure that you are not guilty of fraud in filing the claim.
There exists another condition for which the claim on undue hardship can be filed. This is when you become permanently disabled by sickness or injury, incapacitating you to pay the debt. Instead of financial documents, the court will require you to present a doctor certification.
For both cases, you must file a court action in Bankruptcy court and find a lawyer to prove your case. It would take some time to determine if you have been freed from your loan debt. If one day you receive a call from your loan company telling you to stop paying for your debt and you suddenly think, ‘What does it mean when my student loans have a zero balance due to a claim?’, there is just one explanation. You have won your case.
