7 typical questions regarding Student Loans and Bankruptcy In case the education loan debt is producing a hard situation for your as well as your household, you are in a position to check out the bankruptcy courts for help. While discharging education loan financial obligation in bankruptcy just isn’t simple, the courts can offer some assistance. Here are a few often expected questions regarding education loan financial obligation and bankruptcy in Ohio which will help you see whether this will be a legitimate choice for you. 1. May I apply for Chapter 13 bankruptcy once I have figuratively speaking? Having student education loans doesn’t stop you from filing bankruptcy. Nevertheless, bankruptcy will perhaps not, more often than not, discharge this types of loan. Chapter 13 bankruptcy is really a choice that is good assist lessen the education loan re payments, although the financial obligation is normally perhaps perhaps not dischargeable. Under Chapter 13 bankruptcy, student education loans are believed “non-priority unsecured debts,” similar to bank cards or medical bills. This implies your payment plan will not need you to spend the debts in complete throughout the bankruptcy period. It will help you decrease the amount that is monthly are having to pay towards your figuratively speaking and delay the deadline for repayment. Chapter 13 bankruptcy also sets a remain on collection actions. 2. Could I apply for Chapter 7 bankruptcy once I have figuratively speaking? In many cases, you simply cannot discharge education loan debt whenever chapter that is filing bankruptcy, you could nevertheless register Chapter 7 to cut back other un-secured debts. This can provide the breathing room necessary to allow the debts to be repaid for those who have credit card debt in addition to student loan debt. […]