Help Available for Those Looking to Discharge Student Loan Debt
While the economy has generally been strong in the past few years, young people may think differently. Student loan debt is continuing to grow, and there seem to be no signs of it slowing down anytime soon. Statistics show that 45 million Americans owe a whopping $1.64 trillion in student loan debt.
The average monthly payment is about $200 to $300, and this is too much for many Americans. More than 11% of student loans are in default or at least 90 days delinquent. So what can they do?
When people face medical debt or credit card debt, they can wipe out their debt by filing for bankruptcy. However, that is not an option for those with student loan debt. Discharging student loan debt is extremely difficult. This is because federal law requires borrowers to prove their financial struggles in order to get rid of student loan debt, and this can be quite the challenge.
Only a few hundred bankruptcy filers fight to wipe out their student loan debt each year. Not many are successful, but a recent case showed some hope. A debtor was able to successfully erase $200,000 in debt. The American Bankruptcy Institute has recommended that laws be updated. Lawmakers are also pushing for relief.
A company wants to help borrowers find relief as well. Reset Button, launched in February, will help college graduates with debt find financial freedom. The company works by connecting consumers with attorneys who have experience handling student loan discharges. In its initial stages, the company will cater to people who have declared bankruptcy but haven’t taken the steps to discharge their student loan debt.
The first step is for users to have an initial evaluation with Reset Button to see if they are a good fit. If so, they will pay a $300 monthly fee, which goes into an escrow account. If the attorney can successfully eliminate 50% or more of the client’s balance, then those escrow payments will be applied to the legal fee, which amounts to 12% of the discharge amount. However, if the attorney is unsuccessful, then the person won’t have to pay them a dime. They will get their money back.
In regards to finding an attorney, Reset Button isn’t saving users any money. A person can still expect to pay at least $10,000 to resolve their case. What makes Reset Button different, though, is that the company allows users to avoid a huge initial payment. Instead, a person makes smaller monthly installments if their case is successful.
Contact a Coral Springs Bankruptcy Attorney
Debt is a problem that many Americans face. Sometimes there just isn’t enough money to go around. People often face tough financial times and it is often hard to get out of them.
Do you have student loans and other debt? Are you tired of harassment by debt collectors? If so, a Coral Springs bankruptcy attorney at the Law Offices of Barry S. Mittelberg, P.A. can help you find relief. Schedule a free consultation by calling our office at (954) 752-1213.