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Essentially we can defer your payments for up to 5 years and help with student loans.

Result:

This is accomplished by treating your student loans in a Chapter 13 plan in much the same way we treat other unsecured debt except that student loans aren’t discharged unless you are able to prove severe hardship.  More on that later.

Here is an example.  Let’s say you owe $40,000 in student loans and the monthly payment is $700. We would be able to treat that amount in a Chapter 13 plan and depending on your specific financial circumstances, paying a percentage over 5 years….

We have been able to go as low as even 2%. So in this example your student loan payment would drop to $13 per month from $700, effectively deferring your loan payment for the 5 year length of the plan.

Not very easily.  Because the government wants it that way. And the government usually gets what it wants. Imagine what would happen. The incentive for students to file bankruptcy would be too tempting.  Young people just starting out in life and career and faced with massive loan payments would hardly be able to resist. Banks would end their student loan programs.

It boils down to proving to the Court that you are almost completely disabled and never likely to work in your area of education and training.

Chapter 13 bankruptcy can provide the breathing room you need to reorganize your finances and protect what matters most. Smeloff & Associates is ready to help you move forward with confidence in 9 convenient locations in MA. We offer free debt consultations and second opinions, so there's no risk in exploring your options. Call us anytime. We're available when you need us, with weekend appointments and last-minute filing capabilities. Contact us today to schedule your complimentary consultation and take the first step toward financial freedom.