Student Loans while in Chapter 13 Bankruptcy
Many clients come to file Chapter 13 Bankruptcy with the impression that their student loans will be discharged however this in incorrect. Yes, a student or educational loan is unsecured but it a government based loan and cannot be discharged in a bankruptcy.
You will not pay monthly student loan payments while in bankruptcy however you must resume these payments within 30 day after discharge. The student loan will continue to accrue interest during the Chapter 13 Bankruptcy. Though this does not seem fair, you are forbid from paying on your student loans during your bankruptcy. Any attempt to make these payments may be construed an showing preferential treatment to an unsecured creditor, which the Chapter 13 Trustee will not allow.
You should contact your attorney’s office if you reach any call or collection statements from creditors regarding your student loan(s).A cease and desist letter can be mailed by your attorney office to stop the collection efforts.
Visit the sites below that may be in your area to inquire about bankruptcy:
Tennessee Bankruptcy
Louisiana Bankruptcy
Montana Bankruptcy
Please fill out our free evaluation form to determine if bankruptcy is right for you.
