Understanding Student Loans And Chapter 13 Bankruptcy
If you are struggling with your finances and feel like there is no way out of your debt, you may be thinking about filing for bankruptcy. Bankruptcy can be scary, but for some people, it is the best decision. If you are falling behind on your payments on your house, car, credit cards or student loans, Chapter 13 or a Chapter 11 (for longer repayment plans) might be the lifeline you need to get your financial life back on track.
Filing for bankruptcy can be a stressful and complicated process. At Thompson Law Group, P.C., in Pittsburgh, Pennsylvania, we take the time to go over your situation with you and help you decide what is the best option for you. If you file for Chapter 13 bankruptcy, you may be able to keep your home and restructure your mortgage, have lower vehicle payments, and get rid of your credit card debt and other unsecured debts. With Chapter 13 bankruptcy, you may be able to restructure your tax debt and get out from under the IRS. Unfortunately, you often cannot get rid of your student loans, but you might be able to get some debt relief.
Why Filing For Chapter 13 Bankruptcy Makes Sense If You Have Student Loan Debt
Chapter 13 is more about reorganizing your debts, because debts like student loans will not be discharged. However, you will enter a repayment plan that can make these payments more manageable. If you file for Chapter 13 bankruptcy, you will not have to pay back all of your student loans; the amount varies depending on the payment plan.
Chapter 13 bankruptcy allows you to:
- Create a repayment plan that lasts three to five years
- Have any debt discharged after the payment period
- Pay less in student loans per month
- Save you from losing your home
- Stop creditors from harassing you
Filing for bankruptcy is complicated, which is why you will need an experienced lawyer by your side. We do not offer each client a “cookie-cutter” solution. Our attorneys will work with you to go through each of your debts and assess your situation. We will then work with you to figure out the best solution moving forward. We want to help you get out of a financial hole and on to the next chapter of your life.
Struggling With Debt? We Can Help.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.