Employer Fundamentals: Understanding Employment Law
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Employer Fundamentals: Understanding Employment Law

As a business owner, keeping informed about the finer points of employment law is important. If you're getting ready to hire your first employees, you need to be sure that you understand exactly what you can and cannot do. Don't risk getting yourself into legal trouble by asking the wrong question at the interview or making an off-hand comment that's considered legally unacceptable. I created this site to give you the basics of employment law expectations. I hope that the information here helps you to understand what you should and shouldn't do as you're interviewing and hiring your first staff members.

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Employer Fundamentals: Understanding Employment Law

Can Bankruptcy Get Rid Of Student Loan Debts?

Irene Robertson

According to MarketWatch, student loan debts grow $2,726.27 every second. If you are one of the millions of Americans that have overwhelming student loan debts, bankruptcy could possibly be the answer to relieving that debt. Before filing, it is important to understand how it can impact your debts and what you need to do to qualify fro relief. 

What Happens to Your Debt?

When you file for bankruptcy, how your student loan debts are handled depends on which filing you choose. If you file for a Chapter 13 bankruptcy, the debts are factored into your repayment plan. As you make payments to the trustee over the course of three to five years, he or she will ensure that the student loan is also paid. 

In some situations, the balance of a student loan debt can be discharged if you meet certain requirements. 

However, if you file for a Chapter 7, there is a chance that your student loans can be discharged. If the debts are discharged, you are no longer responsible for them. Whether or not the court decides that you can discharge depends largely on your ability to pay. 

How Can You Get Debts Discharged?

Regardless of if you filed for Chapter 7 or 13, if you have reached the point at which you want to discharge the student loan debts, you have to prove that it is virtually impossible for you to pay the debt. 

When assessing your ability to pay, the courts rely on the Brunner test. The test assesses your present financial situation and your history with making payments to determine if the debt should be discharged. 

If you have experienced a financial hardship, such as you have lost your job and are not expected to find one in the near future, and have made a solid effort in the past to repay your student loans, you might qualify for a discharge. 

However, if you have the financial resources to make the payments and have not had a good history with payments, it is unlikely that the courts will agree to a discharge. 

What Can You Do?

If you do plan to ask for a discharge of your student loan debts, it is important that you try to make payments while the court is reviewing your petition. Remember, the court is paying attention to how well you have paid the debt in the past. Even if you cannot make a full payment, you show a commitment to at least trying. 

For more information, contact John D Rouse or a similar legal professional.


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