Can You Discharge Your Student Loan Debt in Bankruptcy?
It is perhaps one of the first questions many people ask when they contact a Florida bankruptcy lawyer at The Golden Law Group: Can I eliminate my student loans through bankruptcy? Get ready for a tough answer. No, you can't.
Under federal law, student loans are administered by private banking institutions but guaranteed by the U.S. government. In short, every penny of what you owe in student loans, including interest, must be repaid. But that doesn't mean that bankruptcy cannot buy you some relief.
By filing Chapter 13 bankruptcy, you will be allowed to include your student loan arrears into a court-supervised repayment plan of three or five years, depending upon your income. Over the course of the plan, you will be keeping your loan payments up to date, but at a monthly payment rate that is usually significantly lower than your usual monthly payment. At the conclusion of the repayment period, the amount of debt you still owe to other creditors will be discharged, freeing up a significant amount of cash flow for making your usual student loan payments. Chapter 13 is a great way to take the pressure of high monthly student loan payments off your back for a while.
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Learn more about bankruptcy and student loans. Contact an experienced Florida bankruptcy attorney at The Golden Law Group to schedule a free initial consultation. Offices are conveniently located in Brandon, Tampa and Bradenton, Florida. The firm represents clients in communities throughout Manatee County, Hillsborough County and Saratoga County, Florida.