When you decide to go to college, you likely have to make the decision to take out student loans. In your mind, you probably imagine graduating, finding a job and paying off those loans. Unfortunately, that plan doesn't always work.
For some people who have student loans, unexpected situations occur that don't enable them to make their loan payments. In extreme cases, the person may have to file for bankruptcy. If so, the student loan debt might need to be included in the bankruptcy. Florida readers who have federal student loans and may need to file bankruptcy might like to learn about how Educational Credit Management Corporation could stop those loans from making it into bankruptcy judgments.
Educational Credit Management Corporation is a private organization with a government contract, which was hired by the Department of Education to fight against students seeking financial protection from federal student loans through the bankruptcy process. In 2012, this organization was accused of activities that abuse the process of bankruptcy and defy court orders by a panel of bankruptcy appeal judges.
When you consider the case of one woman who had $43,000 in student loans and applied for bankruptcy due to the financial strain of pancreatic cancer, seeing that point might be easier. When the woman filed for bankruptcy protection, the organization claimed that she didn't need to include student loans because survival rates for young patients with that type of cancer are higher and that the possibility of the cancer recurring wasn't enough to warrant dismissal of her federal student loans.
It is a widely accepted fact that having federal student loans included in a bankruptcy judgment isn't easy, but some claim Educational Credit Management Corporation is taking ruthless action in regards to these loans. If you are facing the possibility of filing for bankruptcy, even without student loan debt, working with an experienced Florida bankruptcy attorney can help you understand your responsibilities and rights during the entire process.
Source: New York Times, "Loan Monitor Is Accused of Ruthless Tactics on Student Debt" Natalie Kitroeff, Jan. 01, 2014