Reorganizing Student Loans

There is more outstanding student loan debt in the United States today than there is credit card debt.  The credit card debacle of five years ago is being replaced by a student loan debacle, and the situation is projected to continue.

It is widely believed that you can’t do anything about student loans in bankruptcy.  However, the bankruptcy code does provide for “hardship discharge” of student loans in Chapter 7 under extremely limited circumstances that requires expensive litigation.  (Unless you are old and in terrible shape, you probably won’t qualify.)

Even so, you may be able to substantially reduce your student loan payments temporarily during the five-year term of a Chapter 13.  At the conclusion of the plan, your other debt will be wiped out, and you will be left owing the unpaid portion of the student loan.  In this way, you can avoid an immediate disaster and give yourself several years to develop a long-term solution.

Attorneys Brooks Cotten and Gina Karrh have over 30 years experience in helping people with their financial situations.  Call us today at 770-683-3303.