Monday, November 11, 2013


In the past year, we have helped many people whose student loan payments are higher than they can afford, have lost their tax refunds to student loan seizures, and who have their wages involuntarily deducted by student loan companies.

Filing for a Chapter 13 bankruptcy will keep the student loan companies from going after your wages and taking your tax refund money.  And, in a Chapter 13 filing, you monthly payments to student loans can be reduced significantly.

Taking this step should be a last resort, because the student loans can continue to charge you the same interest as they were before bankruptcy filing, and filing for bankruptcy will not, under almost all circumstances, discharge your student loan debt.  What a bankruptcy filing will do is stop the student loans from forcing unreasonable payment terms on you.  You will be able to set more affordable payment terms.

While this option always should be used as a last resort only, more and more often, seeking bankruptcy protection from student loans is the only solution for many people.  If your income is low, and you have normal living expenses, you may not be in a position to make the monthly payment that your student loans are demanding from you.

The bad economy has forced people to accept jobs that pay less than they need to live, and at the end of the month there is no money left to make that student loan payment.  Fortunately, there is a way to reduce those monthly payments significantly so you can have a payment  you can afford.