St. Louis Student Loans

Filing a St. Louis bankruptcy when you owe a great deal of student loan debt can often give you the relief you need. But understanding what your rights and options are is very important, which is why it is so very important to discuss the matter with an experienced St. Louis bankruptcy lawyer.

One of the unfortunate things about the filing of a Missouri bankruptcy is that student loans cannot be discharged. The government has decided that this kind of debt is too fundamental an obligation, and therefore should not be dischargeable. However, that does not mean that there aren’t options that include a bankruptcy filing.

When a St. Louis Chapter 7 bankruptcy is filed, all of your unsecured debt (like credit cards, medical bills, payday loans, insufficient funds from a bank account, etc.) are all knocked out for good. Once these debts are taken care of, you will generally be in a much better position to pay on the student loans. In fact, the student loan companies will likely be more willing to work out some sort of a payment arrangement that is suitable to your income and finances after the bankruptcy is filed.

But sometimes the best course of action is to file a St. Louis Chapter 13 bankruptcy when student loans are an issue. A Chapter 13 is a repayment plan over the course of three to five years, during which time certain debts are paid back. In such a situation, the student loan company would receive a monthly payment, but these payments are usually far less than what someone is currently paying. This in turn gives you more breathing room in which to budget your other expenses. At the end of the Missouri Chapter 13 plan, your other unsecured debts are typically discharged, and you will be on your way to a fresh start / clean slate.

Regardless of which chapter of bankruptcy is filed, the St. Louis bankruptcy attorneys at The Bankruptcy Company will be prepared to offer you expert advice, and set you on a path towards a better financial future.