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Student Loan Debt in Richmond, VA

The high cost of a college education has left many graduates swimming in student loan debt. Borrowers collectively owe more than $1.5 trillion in debt, a figure that more than doubles the total budget for the state of Virginia. To say these loans have overwhelmed people trying to start a career, purchase a home and reap the benefits of an education would be an understatement.

The negative impact of excessive student loan debt has left more than 11% of borrowers more than 90 days behind, over five million in default and 2.6 million in forbearance trying to figure out how to pay the monthly premiums. That’s why the Agarwal Law Firm provides critical bankruptcy representation for people in Richmond, Virginia who are sinking in student loan debt.


Benefits of Working with a Bankruptcy Attorney

Discharging student loan debt in federal bankruptcy court remains one of the more rigorous legal processes to navigate. While bankruptcy courts generally follow a set of guidelines that resemble a simple math equation, student loan bankruptcy remains less defined. However, it’s essential to keep in mind that discharging this heavy burden can be accomplished. A successful Virginia bankruptcy filing generally results in one of the following benefits for student loan debt:

  • Full Discharge: When the court agrees that the weight of the student loan repayment is too high given your unique circumstances, you may walk out of court debt free.
  • Partial Discharge: In cases where the court believes the student loans are unduly burdensome, a sizable reduction may be ordered. This results in you owing a fraction of the original debt.  

In order to wipe away student loan debt and get a clean financial slate, it will be necessary to persuade the court that carrying this burden would result in what Congress called “undue hardship.” Although that standard tends to be applied by federal judges on a case-by-case basis, an experienced bankruptcy attorney can make a persuasive argument on your behalf.  


Chapter 7 and 13 Bankruptcy in Richmond, VA

Everyday Americans often agree that the high cost of earning a college degree has unfairly left borrowers in excessive debt. If you are suffering student loan debt in Richmond, VA, it’s time to enlist the help an experienced bankruptcy lawyer. The Agarwal Law Firm brings more than 15 years of experience delivering Chapter 7 bankruptcy and Chapter 13 bankruptcy solutions to everyday Virginians. Call or contact our Richmond law firm and schedule a free bankruptcy consultation today.


Frequently Asked Questions

Can student loans be discharged in Chapter 7?

The short answer to this question is: It depends. The long answer may be more informative to people struggling with student loan debt. The process generally involves a debtor filing either a Chapter 7 or 13 bankruptcy claim. Once that is established, your attorney files an additional complaint arguing the student loan debt creates an undue hardship.
The additional filing is considered a separate lawsuit. The court usually considers whether repayment should be waived due to inability to pay, persistently inadequate income and a good faith effort on the borrower’s behalf. The key to a successful student loan bankruptcy case is understanding how individual courts apply these standards and making a strong presentation.

Can I get student loans after bankruptcy?

It may seem almost counterintuitive but filing student loan bankruptcy does not necessarily prevent you from securing an educational loan in the future. The government generally does not review a person’s credit when approving products such as Stafford Loans. However, loan products such as PLUS loans that consider credit scores are likely to be impacted for 5-7 years.

How does student loan debt affect my credit?

Like other major debts, student loans are a significant credit score driver. On the one hand, if you have a reliable repayment history, they can prove to be a credit history asset. On the other hand, if you are struggling to make payments and fall into delinquency, they can damage your credit score and inhibit your ability to get a mortgage, car loan or credit cards.

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