Bankruptcy Attorney Speaks about Student Loan Laws

When you have a bankruptcy attorney talking about why the student loan industry is a total scam. We have some issues. In this country you can bankrupt a gambling debt yet you cannot bankrupt your educational debt.

Student loans puts a new meaning to loan sharking/predatory lending.  The cost of education has sky-rocketed yet the quality has declined.  Collection companies like ours that I am work at is making a killing.  While folks across the nation is struggling.  Just last month alone we have collected over 3 million dollars in student loan balances.  This is considered to be one of our worst month to date.  December is no different – voluntary payments are becoming difficult.  Folks are not paying there student loans. But we have had record numbers of garnishment, litigation, and tax offset requests put in.  I know hundreds of thousands of student loan borrowers are going to get hit with a harsh reality in the next 30-60 days.  God help us all…

Get the Confessions of a Rogue Student Loan Collector
and Learn what really goes on behind closed doors.
http://www.FreeStudentLoanStuff.com

Mr. Kay
Blog: http://www.studentloanfundamentals.com

Credit:
Fred Walker of Austin Bankruptcy Attorney explains how student loans are predatory lending. For more go to http://www.austinbankruptcyattorney.com

A deadly tumor grows on the students of this nation.  This tumor is deadly but only few have chosen to bring light to this serious matter. This malicious growth keeps our students and past students of America impoverished for a great length of time.  As with any serious disease or condition, without treatment the host will be weakened until death.  From a financial stand point, student loan troubles could be considered “serious as cancer”.  The Feds guarantee more than fifty billion dollars in new student loans every year.  Students are voluntarily plugging themselves in to a system that makes them a host for this deadly, crippling, and financially incapacitating disease.  Every year the amount of funded student loans increase and with our current economic situation – more and more people fall back on higher education.  Individuals that followed through and completed their education will soon step foot in the job market where competition is high and with unemployment on the rise – the market is steadily shrinking.

As the number of student loans increased, it is obvious that the demand for collection agencies would grow.  This is a gold mine for the person on the opposing side.  As a borrower counselor (collector) that worked with student loans, it is our mission to make sure that propitiatory information, remains in the dark, meaning any piece of information that gave the borrower’s an edge was considered trade secret.  As a young borrower counselor I was taught by an industry veteran, he was a seasoned collector and was well-rounded, his talk-off was superior and his negotiating skills were known to be best.  Anyone who is planning to become anybody in any industry must have a mentor. To me reinventing the wheel was just plain silly.  I had stepped into this industry with a fresh mind that soaked up everything.  Following in the steps of my mentor helped me hit the phones with full force, and I was soon forcing the borrower’s to pay tremendous amounts of money on a daily basis.  My skills developed quickly because I listened and took precision notes when my mentor spoke.  I had the honor of even having lunch with my mentor almost on a daily basis and these where the times where interesting student loan topics were brought to the table. It was almost daily that the trade secrets were shared and exchanged.

There was this one instance where our discussion topic stuck to my conscience forever. This was an ordinary day, and I ordered my usual meal at taco bell.  As soon as we sat, our usual discussions began, and the topic that impacted me most was the discussion about bankruptcy law.  I was taught time after time that bankruptcy on student loans was “Near” impossible.  During my lunch break my mentor gave me a piece of information that made me almost hurl my taco pizza.  He had mentioned that borrower’s who are experiencing “undue financial hardship” might have a chance getting their student loans discharged through bankruptcy.  I was shocked, and as my curiosity grew I started to investigate.  I pulled up almost every bankruptcy account and day-in and day-out I studied them like a mad man, I needed to figure this out to satisfy this urge for the truth, and eventually I came to a conclusion.

I had kept this as a secret for over 4 years until now. It is funny because everyday a student loan debt collector will tell the borrowers “Bankrupting on your student loan is 99% impossible”.  With our statement, one question should arise “So…What about the other 1%”.

The answer?  Adversary Proceeding

A student loan borrower may file an adversary proceeding against Department of Education. The debtor may recover damages for a creditor’s actions taken in violation of the U.S. Bankruptcy Code, in violation of the automatic stay or the discharge injunction (once the borrower has received a discharge, the former creditors are no longer allowed to try to collect the discharged debts).  In this event, requesting a hardship discharge of student loans is NOT a matter of simply filling out a few forms, it is a full blown adversary proceeding, meaning a full blown civil lawsuit.

You need to draft a complaint, conduct discovery, round up some expert witnesses to testify as to your hardship and why you cannot afford to payback your student loans, conduct a trial, etc.   In any adversary proceeding, just because one is filed, it doesn’t mean that the filer will win the case against the other party. That is the judge’s job to determine who is right and who is wrong.

The judge will be the one who decides what is necessary.  Of course… you can position yourself to get the results you need.  I go into more details on Bankrupting your student loans in my Student Loan Blueprint.   Visit. www.studentloanblueprint.com.

Please leave comments or questions below.  Part 2 will come shortly.

Mr. Kay Production Manager

Rogue Student Loan Collector

The Confessions of a Student Loan Collectors – Visit: www.FreeStudentLoanStuff.com to get the most shocking truth about defaulted student loans. .

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