Student Loans
In most bankruptcy cases student loans cannot be discharged; however, when you meet with us we will evaluate your case to see if this option is available to you.
Under most circumstances your student loans will remain due and owing despite filing for bankruptcy. Just because your student loans will still stop collection practices while you are in bankruptcy does not mean that interest will stop accruing. Because your student loans will survive your bankruptcy, you would be wise to continue to pay them if you can.
If you have the means to pay your student loans during the course of your bankruptcy, you definitely should. However, since collection processes will most likely be stopped during the course of your bankruptcy, you may need to use this time to regain your financial bearings again.
Most of our clients usually struggled financially prior to filing. A garnishment, repossession or even just coming up with all of the extra fees associated with filing bankruptcy can really set a person back sometimes. The money that you would normally pay on your student loans may be needed for repairs around the house or other expenses that may have been ignored over the past few months.
Sometimes student loan payments alone can be too overwhelming to keep up with. With student loans being afforded such special treatment compared to general unsecured debts, the collections efforts on the part of the student loan companies can get very aggressive.
We have helped clients make student loan payments that are based on their disposable income and not what the student loan company is demanding each month. To learn more about whether or not this will work for you, just schedule a free initial consultation with one of our attorneys.