Student Loans and Bankruptcy

Student loans are a very common concern for people. The following is a brief summary of some options regarding student loans.

  • Chapter 13 bankruptcy: As part of a Chapter 13 bankruptcy, you can reorganize your nondischargeable debt. However, you still have to pay 100 percent of your nondischargeable debt under this option. While you are in the bankruptcy there will be no collection action against you.

  • IBR: Student loan lenders offer various loan repayment options. Some are based on income and others extend the life of the loan. IBR, or Income Based Repayment, is a new option available that should be considered.

  • Extreme hardship within or outside of a bankruptcy: If you are able to prove a certain threshold of hardship you may be able to get rid of student loan debt completely. If you can successfully prove undue hardship, your student loan will be completely canceled. In bankruptcy, to discharge student loans you have to file and adversary proceeding.

For more information, you are able to contact us for a free consultation at our Gulf Freeway location office, 10222 Gulf Freeway, Suite B-100, Houston, TX 77034 or call us at 832-209-8833.