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Student Loans and Bankruptcy

Most people incur student loan debt with the best intentions and highest hopes however, if you can not find work in your field or do not find the job or income level that you had hoped for, repayment of those student loans may become difficult or impossible when they become due. The collection calls and wage garnishments start making it more difficult for you to concentrate on finding your first job in your field or focusing on advancing yourself in your present career. It can quickly put you in a rut where you feel trapped and hopeless. Chapter 13 Bankruptcy may be an option when it comes to managing student loan debts.

  1. The automatic stay imposed by the bankruptcy court prohibits student loan lenders from collecting while you are in bankruptcy which is usually 3 to 5 years. You will not be required to pay your student loans and can stop wage garnishments and collection calls. You would make a smaller and more affordable payment (which you and your attorney propose) to the bankruptcy trustee and reduce payments to an amount that you can reasonably afford and manage.


  2. You can pay back a portion or all of your student loan debt through a Chapter 13 Bankruptcy plan. If you have more than one student loan you can “consolidate” your payments and making one monthly payment through a Chapter 13 Bankruptcy Plan.


  3. You will now have an opportunity to relieve the financial pressure, concentrate and focus on your career goals, increase your income and be in a better position to repay your student loans when the Chapter 13 Bankruptcy is completed. If you use that time wisely you can build yourself a pathway and roadmap to being able to afford the student loan payments in the future.

It is important that you consult a competent and knowledgeable bankruptcy attorney to explore your options with student loans and chapter 13 bankruptcy. Attorneys Robert Simonian and Anthony Bucacci have helped many people with their student loan debts by filing a Chapter 13 Bankruptcy. Once the financial pressure is off, clients usually call us within a year after the Chapter 13 Bankruptcy protection begins and tell us that they are now able to move forward with their life and career and have a solid plan in place when the Chapter 13 Bankruptcy is completed. Feel free to call any time to discuss the particulars of your case or to schedule a free consultation.

Student loans are usually not dischargeable in bankruptcy unless you can prove “undue hardship” for you and your family. This is generally very hard to prove and is usually only granted in extreme circumstances such as severe disability or extreme circumstances where repayment is virtually impossible, every option has been exhausted, future repayment is not possible and you have made a good faith attempt to repay the student loans. Interest will continue to accrue and you will have to begin making payments on the remaining balances of your student loans after your bankruptcy case closes.


Attorney's Anthony Bucacci and Robert Simonian are Massachusetts bankruptcy attorneys helping people file bankruptcy in all of Massachusetts, including Taunton, Fall River, Fairhaven, Assonet, Seekonk, Swansea, Westport Point, Somerset, Westport, North and South Dartmouth, Mattapoisett, Wareham, Middleboro, Lakeville, New Bedford, North Dighton, Raynham, Acushnet, Freetown, Norton, Attleboro and North Attleboro Massachusetts.