There May Be Help For Student Loan Debt

To discharge your student loans in bankruptcy, you must be able to demonstrate that they cause an undue hardship and that you are unlikely to ever repay them. Unless you are severely disabled, you will probably not be able to do this. However, bankruptcy can help you discharge your other debts so that your student loan payments are more manageable for you.

If your other debts are making your student loan payments unmanageable, talk to a lawyer with decades of experience. Contact my Rockford office at 815-306-4189 today to see if a fresh start in bankruptcy will help you get back on track. Free consultation.

How Bankruptcy Can Provide Relief

If your student loans have spiraled out of control and your lenders are now taking collection action against you, Chapter 13 bankruptcy can stop that collection activity. Chapter 13 gives you relief in the form of one monthly payment, based on your monthly budget, for a period of up to five years. With student loan default rates on the rise, Congress may change the laws regarding student loans. Chapter 13 may offer you temporary relief to see if bankruptcy laws change in the future.

The government does offer programs to help debtors who are struggling to pay student loans. If your student loans are insured by the federal government, you could be eligible for the Income Based Repayment Program, where your payment is determined by your monthly income.

For more information on the Income Based Repayment Program, please visit the Department of Student Aid:
http://studentaid.ed.gov/repay-loans/understand/plans/income-based

Still Have Questions? Contact Me.

For a free consultation with an experienced attorney, please contact me online today.