If you are struggling with student loans and considering bankruptcy, you may wonder how filing will affect these debts. What happens to student loans in Chapter 13? In most cases, student loans are not discharged in Chapter 13, but you can include them in your repayment plan to stop collection and manage your payments while under court protection. Chapter 13 bankruptcy allows you to reorganize your debts and create a three- to five-year repayment plan.
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Frequently Asked Questions
Are student loans discharged in Chapter 13
Generally, student loans are not discharged in Chapter 13, and you will owe the balance after your plan unless you prove undue hardship. Most borrowers in Chapter 13 bankruptcy will find their student loans survive the process without discharge.
Can student loans be included in Chapter 13 payments
Yes, student loans can be included in your Chapter 13 plan for structured repayment and collection protection.
Does Chapter 13 stop student loan garnishments
Yes, the automatic stay in Chapter 13 stops garnishments and collections during your case.
What happens to student loans after Chapter 13
The remaining student loan balance will still be owed after your case unless discharged through undue hardship.
Should I file Chapter 13 if I have student loans
It may help you manage other debts while preventing collection actions on student loans, but you should discuss your situation with a bankruptcy attorney.