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 the Law Office of Bernard J. Natale, Ltd., at my Rockford office at 815-306-4189 today, and I can review your situation and help you decide if a fresh start in bankruptcy will help you get back on track. You have nothing to lose, as I offer a free initial 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.
Chapter 13 may offer you temporary relief, and by eliminating many of your other unsecured credit card or medical debts, you may free up additional cash that can be used to make genuine progress toward paying down a student loan.
Other Options For Student Loan Debt
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 Plan, where your payment is determined by your monthly income.
For more information on the Income-Based Repayment Plan, please visit the department of student aid:
Have Questions? Call Me.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.