Student Loans: Accrued interest while in Chapter 13 Bankruptcy.
If you owe balance on student loan when you file bankruptcy then you are not allowed to make direct monthly payments during your bankruptcy. These monthly payments to the student loan creditor must be deferred until after bankruptcy discharge is attained.
However, the student loan will still continue to accrue interest while in bankruptcy. The filing of the bankruptcy will not stop the interest accrual. Therefore you loan balance will be higher after the discharge of your bankruptcy. After discharge, you should contact the Student Loan creditor to re-establish payment plan for the loan.
