San Diego Bankruptcy Attorney
Most bankruptcy attorneys know as a general rule that student loans cannot be discharged in a Chapter 7 bankruptcy. It is possible, but very difficult. The debtor must meet certain standards of undue hardship in order to have the debt discharged under Chapter 7. Student loans should be handled by your San Diego bankruptcy attorneys in a Chapter 13 debt relief plan.
As bankruptcy attorneys know, a Chapter 13 debt relief plan is one of reorganization. In a Chapter 13 case, individuals propose a repayment plan to the Chapter 13 trustee on how they will be able to repay certain creditors based on their future income. The Chapter 13 debt relief plan will allow them to make-up delinquent payments on student loans, cars and other secured debts. If they cannot meet the student loan undue hardship standard under a Chapter 7 bankruptcy or Chapter 13 bankruptcy, there are other benefits of including their student loans in a debt relief plan. One benefit is that they determine the size of the payment rather than the student loan company. Another is that there are no harassing phone calls or collection actions during the Chapter 13 plan. These are all things you should discuss with your bankruptcy lawyers.
Some San Diego bankruptcy lawyers like to allocate more of the debtor’s money to student loan debts rather than other debts. Your other debts will be completely discharged after 3 to 5 years. Bankruptcy lawyers will say that the debtor will continue to pay on his or her own rather than having the Chapter 13 trustee pay it out of the plan. This has the net effect of reducing the debtors obligations under the Chapter 13 plan. Your bankruptcy lawyers will be able to structure the Chapter 13 plan for you.
The student loan companies will be very aggressive in trying to collect any student loan debt owed. You need an aggressive bankruptcy lawyer to fight back. For over 35 years, Thompson | Wedeking has helped thousands of individuals in San Diego, Southern California and California get the fresh start and student loan relief they deserve. Call our office today at 619.615.0767 for more information.