St. Louis Bankruptcy and Student Loans
The general rule in the world of St. Louis bankruptcy is that student loans cannot be discharged. This rule was only strengthened when the new bankruptcy laws took effect in October 2005. But even though this rule exists, there are still options available to you. Specifically, a St. Louis Chapter 13.
STUDENT LOANS CANNOT BE DISCHARGED IN A CHAPTER 7
Chapter 13 of the Bankruptcy Code is described as a repayment plan over the course of three (3) to five (5) years during which certain debts are paid back. When student loans are involved in a Chapter 13, they are handled in one of two ways: 1) a portion of the student loans are paid back as part of your repayment plan; or 2) none of the student loans are paid back during the repayment plan because they are “deferred”.
WE CAN MAKE SURE YOUR STUDENT LOANS ARE PUT ON HOLD FOR UP TO 5 YEARS!!
The word “deferred” is put in quotes because that is a term normally used by the student loan companies themselves. But a more accurate way to describe how student loans are handled inside of a 13 is that they are put on hold until the bankruptcy has completed its course (three to five years down the road).
Why would this deferment be beneficial to you? Because it puts the student loans off for the next several years, during which time you do not have to pay a single dime on them. In other words, during the time you are engaged in a Chapter 13, the student loan companies cannot demand money from you, they cannot harass you about the amount that you owe, they cannot garnish your wages, and they cannot even contact you by way of a letter or phone call. The student loans are quite literally put on hold.
As described above, the 13 cannot get rid of the student loans. But at least it would give you some breathing room for the next several years. In the meantime, it is quite possible that the federal government takes substantial action in regards to education loans (whether it is the ability to refinance the loans, create a repayment plan based on your actual income, or even provide an avenue through which you might discharge those debts). Until then, one of the best current options is the St. Louis Chapter 13.
At The Law Office of Jennifer Alter-Rieken, we want to make sure that you are in the best possible position to take care of your debt. In the case of student loans, things can get a little tricky. But at least the Chapter 13 is there to help!! And we only charge $300 upfront in attorney fees to get you started!
We have two locations: in the Central West End of St. Louis, at 1 North Taylor, 63108; and in the Twin Cities of Crystal City / Festus, at 1000 Truman Blvd, 63019. The consultation to discuss your options in a St. Louis Chapter 13 is free of charge. And if you wish to move forward, we only charge $300 upfront in attorney fees to file your case.