On the Blog
Free Evaluation

Your own Personal Bankruptcy
Evaluation... In 5 Easy Steps!

Our Free Evaluation Tool
Free eBook

Download the Essential Guide for
Anyone Considering Bankruptcy.

Get our Free eBook

Student Loans In Chapter 13

By Christopher Lee February 4, 2013 | Posted in

student loanAs the student loan debt industry nears $1 trillion, many graduates have already experienced financial hardship over maintaining their payments and  many more will soon join suit. Unfortunately, finding help with student loan debts is becoming more of a problem in recent years. However, that isn’t to say that you have to continue to suffer under a mounting debt burden.

Relief Options

The first potential source for help is through your lender directly. Many student loan lenders are willing to provide temporary suspensions in payments, lower interest rates or longer repayment terms that can reduce the monthly payment requirement. The tricky part is having a legitimate reason for needing these modified payment terms. In many cases, a lender will need proof of your financial hardship such as lack of employment, inadequate salary or additional debt brought about by a medical condition.

Although negotiating with lenders directly can help you resolve your financial hardship over debt payments, there are still instances in which your lender cannot provide the full range of relief that you need. You may have heard that filing for bankruptcy is not an option for student loan debt relief. This is true to an extent; however, there are still ways to have some of your financial troubles relieved in a Chapter 13 filing.

When you file for Chapter 13 bankruptcy all of your debts will be listed on your petition, including student loan debts. Typically, these debts are not eligible for a debt discharge, but can become part of your repayment plan if you can demonstrate these payments create undue financial hardship. That is to say that your financial situation is such that the bulk of your debt liability is held under a student loan and that your income is insufficient to support these payments. Note that federal student loans are not eligible and only a privately held loan may be considered in these circumstances. Further, if your debt is approved you will be required to repay them as part of your extended payment plan as a priority debt. In other words, these debts will be repaid before any other type of debt like a credit card, utility or medical bill.

 



Which of the following has happened to you RECENTLY?(select all that apply)

  • Creditor Harassment
  • Disability or Illness
  • Divorce
  • Foreclosure
  • Lawsuits of Judgments
  • License Suspension
  • Loss of Income
  • Loss of Job
  • Repossession
  • None of the above
  • Other



 Est. Total Debt

$

What to do now? : Simply add up ALL of your total debt from the items on the left( estimated is fine) and enter the total in this box. Then click NEXT.

 


Share This Page email share facebook share linkedin share google plus share twitter share

Comments are closed here.

Most Recent Blog Post
Blog Menu
Site Menu
Archive

Testimonials

Everybody I have encountered and meet with at Lee Law Firm has been positive and encouraging. And that is exactly what I needed because nobody looks forward to going through bankruptcy. The staff was honest about my situation and put my mind at ease about the process, and for the first time in months I was able to relax and focus…

on getting out of my financial situation with hope of starting over. I would recommend Lee Law firm of friends and family because I feel like they have my best interest at heart.

-- Brad H  


We help good people through bad times

Dallas Office

5910 North Central
Expressway Ste 1448
Dallas, Texas 75206
Phone: (214) 234-8080
Hours: Mon-Sat
8:30am - 6:30pm

Fort Worth Office

4150 International Plaza
Suite. 102
Fort Worth, Texas 76109
Phone: (817) 616-1606
Hours: Mon-Sat
8:30am - 6:30pm

Hurst Office

Principal Office
8701 Bedford Euless Rd.
Suite. 510
Hurst, Texas 76053
Phone: (817) 616-1150
Hours: Mon-Sat
8:30am - 6:30pm

Wichita Falls

2700 Midwestern Parkway
Suite A
Wichita Falls, TX 76308
Phone: (940) 202-1555
Hours: Mon-Sat
8:30am - 6:30pm