Fairmax Law™ has discovered a way to wipe out private student loans in Bankruptcy

We can discharge your clients’ student loans, and it won’t cost you or them a penny. (And we pay you a referral fee after we are done).

There is a common misconception all “student loans” are impossible to discharge in bankruptcy.  This is not true!

  • First, many types of educational loans may look like non-dischargeable student loans, but are in fact fully dischargeable without proving “undue hardship.”   In fact, the Bankruptcy Code never uses the term “student loan,” but instead restricts discharge of three very distinct types of educational debt, including: (1) federal and non-profit education loans; (2) defaulted conditional educational grants; (3) private education loans that are qualified under the tax code.  A substantial amount of “student loans” do not fit inside any of these categories, and are therefore 100% dischargeable in bankruptcy without a need to show “undue hardship.”
  • Second, all non-dischargeable student loans can still be discharged upon a finding of “undue hardship,” which although challenging, is not impossible and can be successfully done through an adversary proceeding.

We call this standard the “Cost of Attendance” analysis.

And the main attorney on our team is Austin Smith, Esq., a nationally recognized figure in the movement to discharge student debt in Bankruptcy. Austin’s work has been features in the Wall St. Journal multiple times on the issue of discharging student loans in Bankruptcy, as well as ABC News, Fox News, the National Law Journal, Law360, GOOD Magazine, People Magazine, and more. And the recent article about him on Market Watch was titled “These Attorneys May Have Discovered a Way to Wipe Away Student Debt in Bankruptcy.”

The first way we can help

If you’re client has already received their discharge, then we will take their case on a contingency fee basis, and we will sue the collectors for violating the discharge order. We have many cases around the country like this now, and we can provide you the case numbers so you can view the cases yourself. Essentially, our relationship with you will progress in the following steps:

  1. we show you (or your staff) how to send a mass mailing to your past clients regarding our service. You would not be advertising our firm to your clientele. Rather, the letter would inform them that you are working with a firm that may be able to wipe out some or all of their student loans.
  2. Then, your staff would put them in touch with us after they call you pursuant to your letters.
  3. We then work with your client hand in hand to review their borrowing history, and determine whether their student debt was in fact discharged in their bankruptcy case.
  4. If our due diligence yields a positive result, then file a complaint against the lender and we either win the case, or settle it before a final disposition. And as a matter of practice, we pay a 20% referral

It’s that simple.

The second way we can help

If you’re client has not yet filed for Bankruptcy, then we can do an analysis to determine whether the student loans they have can possibly be discharged in a bankruptcy due to our “cost of attendance” analysis. We do that analysis for free, and we give that opinion in writing. At that point, your client can hire you to file their Bankruptcy, and then hire us to file an adversary proceeding to seek declaratory relief regarding the nature of the student debt.

At that point, the creditor will either fight the case, or try to resolve it with a settlement. Our history shows that private lenders are more likely to settle the case early by greatly reducing the principal on the outstanding loan, and the interest rate. And they work out nice payment plans for the remainder.

For this service, we charge a flat fee that is dependent on the number of private lenders, and the amount of the debt. And we also do a fee sharing agreement with you that pays you 20% of the fee in return for your services on the file.

The third way we can help

If the first two options don’t work, then we simply look at the case as a purely “undue hardship” analysis. Contrary to popular belief, discharging student loans under the “undue hardship” standard is not impossible. We determine whether your client will pass the strict requirements of the Brunner or the Totality of Circumstances test.  Our attorneys are well studied in these cases, and we are testing the boundaries of this test in many jurisdictions around the country.

In this option, our relationship with your client will be like the relationship we proposed in option number 2 above.

The final analysis.

Fairmax Law™ specializes in discharging all types of “student loans,” including both non-dischargeable education loans that require proving “undue hardship” and education loans that require only a finding that a loan does not meet the definition of a non-dischargeable loan. Fairmax Law™ offers numerous alternative fee payment arrangements, including contingency work and flat fee where applicable.

And our main lifeblood is referrals from Bankruptcy attorneys. And as such, we seek and maintain long lasting relationships with Bankruptcy attorneys around the country. If we can help your client, then you succeed and Fairmax succeeds.

This article is not meant as legal advice, and Bankruptcy is very complicated depending on every persons overall financial situation. So, if you are considering any chapter of the bankruptcy code, is it called one of our attorneys for a free, same day consultation.

To learn more about Chapter 7 or Chapter 13 Bankruptcy, the federal government has excellent information about it on their website at http://www.uscourts.gov/services-forms/bankruptcy

Fairmax Law™ is a Service of Jaafar Law Group PLLC and is a designated debt relief agency that helps clients file bankruptcy under the federal bankruptcy code.

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Fairmax Law is a debt relief and credit repair law firm, with attorneys in multiple states. We are dedicated to bringing people the fresh start that most Americans need. Whether it is a bankruptcy, or a credit repair program, Fairmax Law is the right choice.
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