Erasing Student Loans

Stop Debt Collector Harassment

You have the power to stop student loan harassment. Simply demand that the student loan collection agency stop contacting you in writing. I suggest that you write a letter and send it via fax / email and postal mail certified, with a return receipt clearly stating that you dispute the student loan debt and request that all communication stop immediately. Below is a template that works well:

How to Deal With Collection Agencies
http://thephiladelphiabankruptcyattorney.com/debt-collector/how-to-deal-with-collection-agencies/

If they continue to contact you, the consumer law allows you to sue them up to $1,000 for for the violation of the FDCPA. Here is a brief explanation of the Fair Debt Collection Practices Act.

Stop Debt Collector Harassment – FDCPA
http://thephiladelphiabankruptcyattorney.com/stop-debt-collector-harassment/

Erasing Student Loans

In order to have your student loans wiped out in bankruptcy, you must demonstrate that it would be an undue hardship for you to pay them.  If you can successfully prove undue hardship, your student loan will be completely erased.

A recent study conducted by Jason Iuliano, a Harvard Law graduate and a Ph. D. candidate at Princeton revealed that 40% of filers with large student loan debt received some form of discharge from the bankruptcy court when they filed an adversary proceeding seeking a discharge of their student loans.

The study reviewed 169,774 student loan debtors filing bankruptcy, and found that only 213 debtors filed adversary proceedings, a necessary step to discharge student loans.

And of that 213, 51 received full discharges, 30 received partial discharges and 25 received an administrative remedy. In other words, 0.1% of bankruptcy filers even tried to discharge their student loans. And of those who tried, 50% of them received some kind of relief from the court and 25% received a full discharge of their student loans.

The following is a hyperlink to the Harvard study:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1894445

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