Would a chapter 13 Bankruptcy freeze my defaulted student loans? 20 Answers as of June 27, 2011

I am considering filing for bankruptcy and want to know if my student loans will be affected?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Rosenberg & Press
Rosenberg & Press | Max L. Rosenberg
It would not technically freeze the student loans but it would complicate the repayment and make it difficult for them to contact you. Very likely you would repay the loans through the 13 plan.
Answer Applies to: Connecticut
Replied: 6/27/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
You may not discharge your student loans, but your default may be spread out and depending on how much you owe, you may be able to pay the debt over the next 5 years at terms that would work for you.
Answer Applies to: New Hampshire
Replied: 6/16/2011
William Reed
William Reed | William Reed
A ch. 13 will temporarily stop the interest accrual on the loans and may lower the monthly payments.
Answer Applies to: Florida
Replied: 6/14/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Chapter 13 can help pay student loans. During the chapter 13 there is no collection action. Student loans are, however, nondischargeable. When the chapter 13 plan is completed the unpaid balance is still owing and must be paid in full, including interest.
Answer Applies to: California
Replied: 6/14/2011
David R. Fondren, Attorney at Law
David R. Fondren, Attorney at Law | David R. Fondren
I am not sure what you mean by "freeze" whether they have to stop collections or whether they can't charge interest and late fees? They are not dischargeable. You can pay them in full within the plan duration or treat them as a long tern debt, make monthly payments during the plan and owe the rest later. you have to file a separate complaint and serve a summons on the creditor to determine discharge based on hardship.
Answer Applies to: Missouri
Replied: 6/14/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    I'm not sure what you mean by "freeze". It will stop any collection activities, but the student loans are not dischargeable, so interest will continue to accrue and you will owe whatever the balance is after the Chapter 13 case is completed.
    Answer Applies to: California
    Replied: 6/13/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    You likely will not eliminate the student loans in bankruptcy, but you will not be hounded by the lenders during the chapter 13 process. You will be protected by the Automatic Stay of the bankruptcy (I think this is what you mean by "freeze"). Also, part of your monthly plan payments will go to pay something to the student loans so after the bankruptcy you will not owe as much on the student loans.
    Answer Applies to: Arizona
    Replied: 6/13/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    There are some differences in how student loans are handled in Chapter 13 in the different jurisdictions. While you are in chapter 13 the interest will continue to accrue. That is the problem with student loans, the interest will eat you alive.
    Answer Applies to: California
    Replied: 6/13/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    It will not. To obtain relief from a student loan the debtor must prove to the court three things: (1) the debtor cannot maintain a minimal standard of living if forced to repay, (2) this state of affairs is likely to continue for a significant period and (3) the debtor has made good faith efforts to repay. You should consult a bankruptcy attorney to get clarification of exactly what each of these three elements entails.
    Answer Applies to: California
    Replied: 6/13/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    The student loans won't be able to bother you while you are in chapter 13. But when the chapter 13 is over, what you haven't paid, including interest, will still be there.
    Answer Applies to: Virginia
    Replied: 6/13/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes, the student loans will be paid through the plan to the extent you can afford and at the same rate as other general unsecured debts but the unpaid balance will be due after the Chapter 13 case is over, including interest.
    Answer Applies to: California
    Replied: 6/10/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Like any other debt, banks holding student loans against debtors are stayed from continuing to attempt to collect their debts when you file a bankruptcy petition. However, unlike most other creditors, since student loans are not dischargeable except in cases of very severe hardship, they survive bankruptcy and the lenders can resume calling you after you receive your bankruptcy discharge. In a Chapter 13 case, they may receive part of any monthly plan payment you make, but they have to share a pro rata portion of your plan payment like any other creditor. Since Chapter 13 plan payments frequently pay 0% or some other small percentage of your unsecured debt, your student loan balance may increase during that time.
    Answer Applies to: California
    Replied: 6/10/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    The automatic stay would prevent collection effort but only until the creditor seeks and receives a lift of stay, which is easy for a student loan lender.
    Answer Applies to: Indiana
    Replied: 6/10/2011
    Ellahie & Farooqui LLP
    Ellahie & Farooqui LLP | Javed Ellahie
    Student loans: While a chapter 13 stops a student loan creditor from collecting, the interest on the loan continues and once the 13 is over the creditor can pursue collection on all of it.
    Answer Applies to: California
    Replied: 6/10/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You can pay your student loans at the same percentage of all your unsecured debt according to your confirmed Chapter 13 payment plan. Meaning if 0 percent repayment to unsecured, 0 to student loans for duration of plan.
    Answer Applies to: California
    Replied: 6/10/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Your student loans will most likely be included and treated as an unsecured creditor if you file for chapter 13 bankruptcy.
    Answer Applies to: Washington
    Replied: 6/10/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    In any bankruptcy you HAVE to list all your debts. Depending on your plan, payments may be made on your loan out of your plan. If you owe money at the end, unlike most debts, student loans are generally not discharged. Most bankruptcies will stay collection efforts. Discuss the details of your case with your lawyer (you need one).
    Answer Applies to: Georgia
    Replied: 6/10/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    I don't know enough about 13s to offer good information. They're not allowed as deductions on the Means Test and I believe there's no mechanism to pay them through the Plan. I suggest you ask a lawyer with specific Ch 13 experience.
    Answer Applies to: Virginia
    Replied: 6/10/2011
    Law Offices of John J. Ferry, Jr.
    Law Offices of John J. Ferry, Jr. | John J. Ferry, Jr.
    The student loans are not dischargeable unless you can show undue hardship. During the bankruptcy, the student loan lender cannot take any action against you without permission from the bankruptcy court. However, it probably will make sense to include student loan payments in your plan.
    Answer Applies to: Pennsylvania
    Replied: 6/10/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Student loans are typically not dischargeable in bankruptcy. A CH 13 is a also repayment plan BK so your delinquent student loans would be repaid through the bankruptcy.
    Answer Applies to: California
    Replied: 6/10/2011
Click to View More Answers:
12 3 4 Free Legal QuestionsConnect with a local attorney