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TX bankruptcy attorney, TX chapter 7 lawyerFiling for bankruptcy is often the last resort for many people. If you successfully file for bankruptcy and your debts are discharged, it can affect your current and future finances for years, which is why people do not typically get a bankruptcy unless they absolutely have to. For most forms of bankruptcy, receiving a discharge of your debts is typically the end goal. Most debts can be discharged or forgiven in a bankruptcy, but there are certain types of debts that either cannot be discharged or will not be discharged based on certain circumstances.

Student Loans

When it comes to student loan debt, it is almost never automatically discharged in a bankruptcy. If you are looking to have your student loans forgiven, you must prove to the court that making your student loan payments would cause you undue hardship. To do this, you have to prove that making your student loan payments would not allow you to maintain a minimal standard of living, you will likely be in a tight financial situation for the remainder of your student loan repayment period and you have made a decent number of payments in good faith on your loans.

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Writing off a student loan in bankruptcy requires showing “undue hardship.” What is that?

Student Loans CAN Sometimes Be Discharged

You may have heard that student loans can never be “discharged”—written off in bankruptcy. Untrue.

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wage garnishment in San Antonio, Texas bankruptcy lawyerMost Americans have some form of debt, and many struggle to make payments. Some are fortunate enough to get by with responsible budgeting, consolidation, and other financial strategies. However, unexpected circumstances, such as a suffering an injury or losing a job, can cause a debtor to fall behind. In some cases, creditors will garnish a debtor’s income to pay debt.

Although wage garnishment can severely limit a person's financial freedoms, certain requirements must be met in order for wage garnishments to be legal. This article will briefly discuss how wage garnishment laws work in Texas.

Texas Laws Regarding Garnished Wages

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According to a recent study by WalletHub, the state of Texas ranks as number nine in the list for the “best” student loan debt. WalletHub analyzed all 50 states (including the District of Columbia) using 7 key metrics, including average student debt, unemployment rates, and students with past-due loan balances.

Though nine out of 51 may be good news for the Lone Star State, the rest of the country is not doing as well. As of June 2014, the Federal Reserve Bank of New York, total outstanding student loan debt stood at $1.12 trillion, an increase of $7 billion from 2013.

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college, credit card card, debt, bankruptcy For many families, education is one of the biggest investments that parents will make for their children’s future. Even when some steps are taken to plan for this costly life goal, some expenses can creep up, leading parents and students to rely on credit cards to help. When credit card debt grows out of control, sometimes bankruptcy is the only option to get a fresh start.

According to Sallie Mae, between 3 and 5 percent of parents used credit cards to help pay for educational expenses for the years 2009-2013. In 2013, the average college student spent about $3,156 on their own credit cards, too. Whether it’s tuition, books, transportation, or other expenses, this credit card usage can add up.

When parents are already strapped for cash, they might get stuck only being able to make the minimum payment on their own credit cards. For students, often new to the credit card game and often with a very limited income, credit cards can add on to a massive amount of debt on graduation when coupled with student loans.

With some families, relying on that credit card for extras or emergencies is the only way to make it through an expensive venture like college. If there’s not a plan in place for repayment or if a family member loses his or her job, however, debt can spiral out of control fast.Relying more and more on credit cards can put both parents and students in a difficult financial situation, making it difficult to climb out and get a fresh start. If your family has been affected by an increasing reliance on credit cards while one or more students was working towards a college degree, you might feel trapped by more debt than you can handle. Contact a Texas bankruptcy attorney today if you need to start over.

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