Chapter 13 Bankruptcy Lawyer Effingham, IL
When you owe student loans and are considering filing for bankruptcy, our Chapter 13 bankruptcy lawyer Effingham, IL relies on knows that bankruptcy can be a good way for paying off your student loans at a later time. Like other unsecured debt, you will not be required to pay your student loans in full during your repayment period and this can make paying them off much easier. If you owe student loans and you want to speak with a member of our team about filing for Chapter 13 bankruptcy, give our office a call. We would like to discuss the payment options with you and see how we can help you in your specific situation.
What ways can filing for Chapter 13 bankruptcy help you pay back your student loans?
There are a few different ways that filing for bankruptcy can help you when you need to pay off your student loans. If you would like to learn more about the filing process, contact our Effingham, Illinois Chapter 13 bankruptcy lawyer.
- The court issues an automatic stay. When you file for bankruptcy in general, the court will issue an automatic stay. This is extremely helpful because it tells creditors to stop contacting you or harassing you about the debt you owe them. Thus, the group who lent you money for your student loans will not be able to call you to collect money from you. Depending on the terms of your bankruptcy deal, this could be between 3 and 5 years.
- This can help delay any payments you owe. As noted above, the Chapter 13 bankruptcy plan will typically be between 3 and 5 years. This means even if you owed your student loans sooner, you will now have a longer period of time to pay off your student loan debts. It is important to remember that interest keeps accruing on your student loans during this process.
- Chapter 13 bankruptcy can make your payments lower. While you are in your Chapter 13 bankruptcy repayment plan, you will only be required to pay what you are able to. Thus, if you cannot pay the normal payments during this process you will not have to. During this time, you can find ways to work on your payments or get a higher income so that you can finish paying off your student loans once your repayment process is complete.
Interested in filing for Chapter 13 bankruptcy to help with your student loans? Call our Chapter 13 bankruptcy lawyer in Effingham, Illinois from Pioletti Pioletti & Nichols now.