Texas Bankruptcy Blog : Texas Bankruptcy Lawyer & Attorney : Fears Nachawati law Firm : Chapter 7, Chapter 13, Consumer Bankrutpcy : Dallas, Fort Worth, Austin, Houston, San Antonio

When you file for a Chapter 13 bankruptcy in Dallas, there are circumstances that allow a discharge (in whole or part) for excessive student loan debt. But there are specific and strict requirements for the discharge of a student loan debt.

The first requirement is to file a separate motion with the bankruptcy court and then appear before the judge to explain your hardship. Your best chance at getting your student loan discharged is to prove that you can't provide a minimum standard of living for yourself and your dependents if you have to repay the student loan.  Some bankruptcy courts will discharge part of the loan on if you can show that repaying it all would be a hardship. 

Other reasons student loans are sometimes deemed unenforceable and thus discharged are due to school closures, fraud, etc.  In the event that you can only get part of the student loan discharged, you will be given the opportunity to pay them off over the course of the plan by filing for a Chapter 13 bankruptcy.

At the very least, when you file for a Chapter 13 bankruptcy, you will halt any collections effort by the student loan servicer. They will not be able to make harassing phone calls or place liens on your assets.

For a free bankruptcy consultation regarding the discharge of student loans, contact Dallas bankruptcy law firm, Fears | Nachawati, toll free at or via e-mail at 1.866.705.7584 or via e-mail at info@fnlawfirm.com. 

A common question asked regarding bankruptcy is whether student loan debt is dischargeable. The answer is that you can consolidate your student loan with your other bills in a Chapter 13 court-ordered repayment plan. When you file for a Chapter 13 in Austin, Texas, the student loan agency must accept payments under the terms of the Chapter 13. The student loan agency is a creditor and they cannot pursue you for any unpaid portion of the student loan during the Chapter 13. Also, the interest that would normally accrue may be waived during the Chapter 13. So in a way, it is a loan forbearance.

One of the benefits of filing for bankruptcy in Austin is the temporary relief, allowing you to pay a reduced percentage of your student loan and other outstanding obligations. They will not be able to put a lien on your income or assets. But there is a catch. After your Chapter 13 discharge they may pursue you for any portion of the student loan that was not satisfied by your Chapter 13 payment plan. After the Chapter 13 is discharged or dismissed, however, you will have the opportunity to work out a payment plan to pay the remaining balance.

For a free consultation about student loans forbearance and bankruptcy contact Fears | Nachawati via toll free phone a 1-866-705-7584 or via e-mail at info@fnlawfirm.com.