Increasingly, one of the most common questions we’re asked is whether you can discharge student loans in bankruptcy. Until 1998 student loan debtors were able to discharge some loans if they were old enough. But in 1998 Congress changed the law to make it harder to for student loan debtors to get relief. Restrictions on the discharge of student loans were first applied just to federal loans but in 2005 they were extended to private loans as well. This hasRead more
I am Nancy Thompson with Thompson Law Office. I am a bankruptcy attorney in Des Moines, Iowa and represent people in bankruptcy throughout the state of Iowa. Welcome to this blog on Chapter 13 bankruptcy.
What Is Chapter 13 Bankruptcy? Chapter 13 bankruptcy helps a person reorganize debts. Over a 3-5 year period debtors make payments to a trustee, who disburses the funds to creditors. Unpaid debts remaining at the end of the plan period are discharged, just as they would be in a Chapter 7. Secured creditors may be paid by the trustee or directly by the debtor. Unsecured creditors may receive payments if there is income left over each month beyond what isRead more