Why This Bankruptcy Attorney Added Student Loan Cases to Her Bankruptcy Practice
Here are three key takeaways from this episode of 720 System Strategies:
- Student loan work is sitting inside your existing client base, and most attorneys are ignoring it.
- A small percentage of cases can turn into high-value matters with fees in the $4,000 to $10,000 range
- The learning curve is manageable, especially if you use tools like AI to analyze loan data
Most bankruptcy attorneys are still saying the same thing they’ve said for years: “I can help with everything… except your student loans.”
That answer used to be true. It’s not anymore.
In this episode, Tara Salinas breaks down how adding student loan adversary work has become one of the most practical and profitable additions to her practice. She walks through real numbers, how to identify good cases, and how to actually get started without feeling buried.
If you want to see how this fits into your practice, watch the full episode. Or keep reading for the key questions attorneys are asking right now.
Frequently Asked Questions
- Can bankruptcy attorneys really help with student loans now?
- How many bankruptcy clients actually have student loan issues?
- What percentage of clients qualify for student loan discharge under the DOJ guidance?
- How much can attorneys charge for student loan adversary cases?
- Are clients willing to pay for student loan discharge work?
- How difficult is it to add student loan work to a bankruptcy practice?
- What is the first step to getting started with student loan adversary cases?
- How can attorneys quickly analyze student loan data?
- Are student loan discharge cases risky due to changes in administration?
FAQ: Can bankruptcy attorneys really help with student loans now?
Bankruptcy attorneys can now help with student loans by using the Department of Justice attestation process, which creates a clearer path for discharging or reducing federal student loan debt in certain cases. While not every client qualifies, there is now a structured framework that makes these cases far more accessible than in the past.
FAQ: How many bankruptcy clients actually have student loan issues?
A significant portion of bankruptcy clients have student loan issues, with estimates around 60 percent in some practices. Even if not all qualify for discharge, many still need guidance, making this a large and often untapped opportunity within an existing client base.
FAQ: What percentage of clients qualify for student loan discharge under the DOJ guidance?
Only a subset of clients qualify for student loan discharge under the DOJ guidance, typically around 25 to 30 percent of those with student loans. Qualification often depends on factors like income and how long the borrower has been in repayment status, with some districts requiring at least 10 years.
FAQ: How much can attorneys charge for student loan adversary cases?
Attorneys can charge between $4,000 and $8,000 for federal student loan adversary cases and $5,000 to $10,000 for private student loan cases. Fees vary based on complexity, risk level, and likelihood of success, with higher fees often tied to more difficult cases.
FAQ: Are clients willing to pay for student loan discharge work?
Clients are often willing to pay for student loan discharge work because the potential savings are substantial, sometimes eliminating or reducing six-figure debt. Many clients view the legal fee as a short-term investment compared to years or decades of ongoing payments.
FAQ: How difficult is it to add student loan work to a bankruptcy practice?
Adding student loan work to a bankruptcy practice is more straightforward than many attorneys expect, especially for those already familiar with bankruptcy processes like the means test. The main effort involves learning the attestation process and reviewing loan data, rather than managing complex ongoing litigation.
FAQ: What is the first step to getting started with student loan adversary cases?
The first step to getting started with student loan adversary cases is to read the Department of Justice guidance and review the attestation form. These resources outline the criteria and structure of the process, making it easier to identify which clients may qualify.
FAQ: How can attorneys quickly analyze student loan data?
Attorneys can quickly analyze student loan data by using AI tools to organize and interpret information from the client’s NSLDS report. By structuring the data into summaries of balances, payment history, and school attendance, attorneys can rapidly determine eligibility and build a case strategy.
FAQ: Are student loan discharge cases risky due to changes in administration?
Student loan discharge cases appear relatively stable despite changes in administration, as the underlying framework has persisted across different political environments. While implementation can vary by district, the process itself continues to be used and has not been eliminated.
Disclaimer: The content on this blog is for informational and educational purposes only and does not constitute legal or financial advice. Watching our videos and reading our blogs does not create an attorney-client relationship. Always consult a licensed bankruptcy attorney or financial professional about your situation.