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Can Chapter 13 help me with student loan debt?

Getting a college degree in Florida and across the country has become increasingly expensive. If you took out student loans in order to pay for your tuition, books and fees, the total debt after graduation may seem overwhelming. Private loan companies often charge high interest rates that only add to the burden. The Pittsburgh Post Gazette reports that, even though student loans can rarely be discharged in a chapter 7 bankruptcy, many people are finding relief from high monthly payments by filing for Chapter 13 bankruptcy.

A Chapter 13 bankruptcy is a reorganization of debt that allows you to pay a portion of what you owe each month. The payment is made to a trustee, who then pays your creditors. Because the payment is based on your income and living expenses, it is likely to be much more manageable than the original payments. Credit card debt can be included in the bankruptcy, as well, often without changing your monthly payment.

The maximum time limit of a Chapter 13 bankruptcy is 60 months, and at the end of that period, you would be responsible for the regular student loan payments again. However, other debts that are included, such as credit card debt, will be discharged at that time. Many people find that five years after graduation is ample time to begin a successful career, so that when it is time to make regular payments, they have the finances to do so. This information about student loans and Chapter 13 bankruptcy is for educational purposes only and should not be taken as legal advice.

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