Chapter 13 Bankruptcy and Student Loans
Filing for a chapter 13 bankruptcy is the most common route taken by our clients with student loans. While the chapter 13 bankruptcy does not discharge the obligation on your student loans, it can give you some relief. A chapter 13 bankruptcy sets you up on a payment plan and allows you to pay a percentage of the total debt owed. The benefit of filing a chapter 13 bankruptcy is that it will allow you to pay a percentage of what is owed on your student loans and all other unsecured debt like credit cards and medical bills. After the bankruptcy is complete, the remaining balance on the unsecured debt will be discharged, and you have paid at least a portion of your student loans without incurring additional penalties or potential late fees. Interest will continue to run on your student loans, but this process will prevent any wage garnishment and allow you to reorganize and get a game plan together.
Student loans are a common obstacle that we deal with individually. There are multiple ways to approach this debt and we will be more than happy to discuss what options you may have. Please feel free to reach out and set up a free consultation with a Milwaukee, Wisconsin bankruptcy lawyer so we can answer any questions you may have.