Bankruptcy Lawyers Queens NY Reduce Debt and Loan Burden

The client carried $12,580 in debt across multiple credit cards, with interest making repayment increasingly difficult.

In addition, she owed approximately $58,000 in student loans incurred while obtaining a bachelor’s degree.

The client understood that while Chapter 7 bankruptcy could eliminate credit card debt, student loans are generally not dischargeable under federal law.

Bankruptcy Lawyers Queens NY explained the legal limitations clearly while exploring alternative strategies to reduce the overall debt burden.

Bankruptcy Lawyers Queens NY confirmed that the client qualified for Chapter 7 based on income and means test requirements.

All credit card balances were classified as unsecured debts eligible for discharge.

While student loans could not be discharged absent undue hardship, Bankruptcy Lawyers Queens NY identified a potential loan modification and negotiation program to pursue concurrently.

This dual approach allowed the client to address immediate debt relief while attempting to reduce long term educational debt.

Upon filing, the automatic stay immediately stopped all collection efforts on credit card accounts.

The bankruptcy trustee reviewed the case and determined that there were no non exempt assets available for liquidation.

All required hearings and disclosures proceeded without complication under the guidance of Bankruptcy Lawyers Queens NY.

Meanwhile, persistent negotiations with the student loan servicer continued, supported by documentation of the client’s financial circumstances.

All $12,580 in credit card debt was fully discharged through Chapter 7 bankruptcy.

Through sustained negotiation, the student loan balance was reduced from $58,000 to $52,000.

Such reductions are uncommon and difficult to achieve, but Bankruptcy Lawyers Queens NY secured this result through persistent lender engagement.

While results vary by case, the client expressed strong satisfaction with the outcome and the comprehensive approach taken by Bankruptcy Lawyers Queens NY.

At SJKP, our bankruptcy team regularly serves as Bankruptcy Lawyers Queens NY for individuals facing complex debt structures involving both consumer and student loan obligations.

We assist with Chapter 7 filings, creditor defense, and strategic negotiations aimed at maximizing financial relief under New York and federal law.

If you are overwhelmed by debt and unsure how bankruptcy may affect your student loans, contact SJKP to consult with Bankruptcy Lawyers Queens NY and explore solutions tailored to your situation.