When the Justice Department finishes reviewing your attestation, it doesn't just say yes or no. It can support discharging all of your federal student loans, some of them, or none.
Full discharge
If your income can't cover your necessary expenses and your situation is unlikely to improve, the government may support discharging your loans entirely. The parties then present an agreed judgment to the bankruptcy judge.
Partial discharge
Sometimes your finances show some ability to pay — just not enough to repay the full balance. In that case, the government may support a partial discharge: wiping out part of the balance and leaving an amount you can realistically pay.
A partial discharge can still change your life. A balance that felt impossible may become manageable.
How to evaluate a partial offer
If you receive a partial offer, we'll walk you through:
- How much is discharged and how much remains
- What the remaining payment would look like month to month
- Whether your situation is likely to change, which affects whether the remaining amount is realistic
- What happens if you say no, including the cost and risk of taking the case to trial
The decision is yours. Our job is to make sure you understand the trade-offs.
If the government says no
If the government declines to support discharge, our flat-fee work ends. You owe only whatever remains of the $2,500 flat fee. You can stop there, or choose to take the case to trial. Trial is a flat fee of $5,000 plus costs, payable over time, and you would sign a separate agreement first.
The judge decides
Whatever the government recommends, the bankruptcy judge makes the final decision.
Questions? Call 702-386-8600 for a free consultation.