Skip to main content

Student Loans and Chapter 13 Bankruptcy

In Myrtle Beach, South Carolina most people who for file for bankruptcy are solid, hardworking folks who have encountered tough financial times through no fault of their own. Chapter 13 is a tool they can utilize to regain their financial footing and keep aggressive creditors at bay.

Some debts are dischargeable under Chapter 13 bankruptcy, such as credit cards, medical bills, and personal loans. These "unsecured" debts are not backed up by specific property as collateral (e.g., house or car). One unsecured debt that Chapter 13 treats differently, however, is student loans.

A discharge of student loans is difficult to achieve without an extreme circumstance, such as sever disability. Although student loans will still need to be paid off, filing for Chapter 13 bankruptcy can delay or reduce loan payments throughout the length of your bankruptcy case (often 3-5 years).

With chapter 13, your disposable income each month is paid to your Chapter 13 trustee. Disposable income is the difference between your income and your "reasonable and necessary" expenses as determined by your Chapter 13 plan. Your trustee divvies up your disposable income among your unsecured creditors. If you have no disposable income, creditors get nothing.

At the end of the Chapter 13 process, most remaining unsecured loans will be discharged. Student loans will still need to be paid in full, however, including accrued interest, under a new payment plan coordinated with your student-loan lender. Hopefully, the 3-5 year window afforded by Chapter 13 will have shored up your financial situation, enabling you to handle future payments.


Popular posts from this blog

Questioned by the Police? - Don't Forget Your Rights

One of the special things about our country's criminal justice system is that if you are suspected or accused of committing a crime, you have certain fundamental rights. Unfortunately though, many people aren't aware of their rights, or, in the head of the moment, they forget about those rights.

For instance, citizens who find themselves being questioned and in police custody may not even be aware that they have a basic fundamental right to have an attorney present any time they are being questioned by any branch of law enforcement.

Truth is, having an attorney present if you are being quested is vitally important.

Why is that?

For one thing, an experienced criminal defense attorney can help you from incriminating yourself, can make sure that you don't answer questions that are designed to trick you, and can keep officers from asking the same question over and over again. Bottom line - having a criminal defense attorney on your side can help make sure that you don't ma…

Your Rights When You're Pulled Over for a Supected DUI

Fact is, most people don't even know their rights if they're pulled over! Here's a quick list of the most important rights you need to know and how the conversation may go if you are pulled over:

"Do you know why I pulled you over?" It's typically the first thing you'll hear. It's also deliberately designed to get you to admit to certain behavior. Be polite and simply ask, "Why do you ask?" and then wait for a response. Do not comment. That phrase "anything you say can and will be used against you in a court of law" is truer than you'll ever know, trust us.

"Have you had anything to drink tonight?" If you truthfully have had nothing to drink that night, say, "No." If you've had something to drink, you don't have to share that information! Telling the officer that you've been drinking will be evidence used against you. Instead, say, "I have no statement to make." While it may seem unnatura…

Research on New IBD Treatment in Full Swing

Over 1 million Americans are beset with irritable bowel disease (IBD), an umbrella term for various chronic, debilitating inflammatory intestinal conditions, including Chron's disease and ulcerative colitis. Symptoms of IBD include severe diarrhea, pain, fatigue, and weight loss. Currently, treatment options are limited, with many depending on daily enemas to find a measure of relief.

Daily enemas, as one could imagine, are uncomfortable and impractical. In addition, the drugs utilized in enemas are also absorbed by healthy tissues that don't need them, sometimes resulting in further complications.

However, a research team from Brigham and Women's Hospital in Boston, in coordination with other research centers, offers hope of a better way for IBD sufferers: hydrogel.  The hydrogel is composed of ascorbyl palmitate (AP), which is already an FDA-approved material, and is an excellent carrier of medication.

Inflamed tissue is positively charged, while AP is negatively charged…