Legal Aid Bankruptcy?

Apr 4th, 2014 | By | Category: Legal

Too many students had taken out an unconscionable amount of loans for school and between graduation and starting to work would file for bankruptcy, eliminating the necessity to repay the loans. While bankruptcy probably won’t eliminate the necessity for repayment of college loans it may help ease the new graduate’s debt load, allow them to make their payments without exhausting their finances.

There are three areas a bankruptcy court will consider if student loans form part of a bankruptcy filing. In order to be relieved of the responsibility, the person will have to demonstrate that paying the loan will create an undue hardship on the person, meaning that if forced to pay they cannot maintain even a minimum standard of living. The second fact is that if the time in respect of which the student has to reimburse the loan will stretch over a significant time. The last issue on which the court will consider wiping out a student loan debt is if the student has done a valiant effort to pay off the over a long period of time, for instance five years, and is still having difficulty making the payments.

After her husband died, Mary Veronica Santiago fell behind on her bills, and the creditors began to call. So two years ago, she took refuge in bankruptcy, hoping to have her debts wiped away. But far from providing a fresh start and peace of mind, the Chapter 7 filing thrust Mrs. Santiago, 79, who lives in the East Village, into the center of a case that bankruptcy lawyers say poses a major risk to her and the millions of other New …


Filing for bankruptcy however, may relieve the weight of other qualified debts, allowing money to be used in order to make payments on student loans.

We can’t disagree with that

It is a fact that the law allows individuals to file for bankruptcy on their own. As with most legal proceedings, pro se, or by self in legal terms, is an acceptable way of a person representing themselves in court. It has often been reported that a person who serves as their own legal counsel in court has a fool for a client. While filing bankruptcy petitions on their own, can save money, if not done correctly, it can give rise to the petition being dismissed or denied.

Is Legal Aid Ontario Secured against Bankruptcy?
I have claimed bankruptcy, but still keep getting letters from Legal Aid Ontario. Do I still have to pay them, or are they included in my bankruptcy?

  • only the court papers will tell you that!!!


  • Court procedures are fairly rigid and there’s going to be a ton of paperwork to be filed. The term filing for bankruptcy can mislead many people to think it is a simple matter of filling out a few forms and handing them to a clerk in the court. As a broad brush idea, this is basically true, but the truth is that the right forms have to be filled out correctly and under the right order to be admitted by the court.

    A person generally files bankruptcy if the other debt relief options fail to work for him. The New Federal Bankruptcy Laws were entered in the year 2005, so that the amount of consumers filing bankruptcy is minimized. The new laws have however not prevented consumers from filing bankruptcy. But the norms pertaining to filings have become very rigid. Though a person can file bankruptcy on his own, it’d be better if he takes help of a lawyer. It is always better to have someone who’ll be legally representing the debtor. Experienced lawyers make the matters simplified.

    A person can file either for Chapter 7 or Chapter 13 bankruptcy. The Bankruptcy Code is designed in such a way that it not only benefits the lenders but the debtors as well. Under the new laws a person also needs to take a credit counseling session. The credit counselor has to be approved by the U.S. Trustee. A person has to shell out approximately $60 for a credit counseling class. However, through a waiver program, the debtor can avoid paying for the credit counseling classes if it can be demonstrated that he has a very small income and an attorney from a free legal aid program is representing him.

    Choosing the right attorney in bankruptcy is as important as determining to hire an attorney. When the time comes that a lawyer is needed talking to legal aid services or to friends who may know attorneys for a recommendation can help locate the only one who can work on the bankruptcy professionally. Some may have a large caseload and not be able to give the type of service expected.

    It will pay dividends in the long term to do some research into bankruptcy attorneys before trusting your financial fate into someone who may not have sufficient hours in the day to obtain their work done.

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