CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Chapter 13 bankruptcy Can Help with Student Loans

As the economy continues along a slow path toward recovery, many Florida residents are struggling to find and keep good jobs. Even those with a college education are finding difficulty in a slow job market, and in many cases are also faced with high levels of student debt. One recent report looks at the current debt scenario for those who took out private loans to fund their education, and suggests that filing for Chapter 13 bankruptcy may provide a much-needed solution.

Private student loans are not eligible for discharge under current bankruptcy law. A very limited number of exceptions are made, but those rare cases involve a demonstration of extreme circumstances. For most who borrowed to attend school, bankruptcy will not lead to the elimination of student loan obligations.

However, there may still be a benefit to filing for Chapter 13 bankruptcy. The bankruptcy process will lead to the establishment of a five year plan to restructure existing debt payments, including student loan debt. There is a string movement underway to change the rules that exclude student debt from eligibility for discharge through bankruptcy, and it is possible that a change could occur within that five year period.

Even if student loans are never allowed to be discharged through Chapter 13 bankruptcy, the process can still lead to the discharge of other forms of unsecured debt. This can leave borrowers with enough room in their budget to allow for repayment of the student loans. While this approach may not be the best solution for every Florida consumer, it is worth the time and effort to research whether it may offer benefits for one’s particular debt needs.

Source: Huffington Post, “My Private Student Loan Debt is Out of Control,” Steve Rhode, June 10, 2013

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions