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

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…

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…

Auto Accidents and Traumatic Brain Injuries

Traumatic brain injuries (TBI) are responsible for the deaths of approximately 50,000 Americans each year and the hospitalizations of roughly 230,000 more. Many more victims go undiagnosed.

Auto accidents are one of the leading causes of TBI. Most TBI's are closed head injuries, which means that trauma sets the brain in motion inside the skull. The brain gets slammed against the interior surface of the skull, resulting in contusions and swelling. 
Trauma can also initiate rotational forces that twist and stretch the brain, which can damage axons. Brain neurons send messages via electrical impulses; axons are the carriers of these impulses. When axons are damaged, brain function is diminished. 
A condition called diffuse axonal injury (DAI) occurs on a cellular level and leaves blood vessels and major brain structures intact. This type of damage cannot be detected by MRIs or CT scans, making DAI vastly under diagnosed and under treated. 
Brain injuries are unlike injuries to other …