Port Huron, MI Bankruptcy Law Firms & Lawyers

I am not sure why you can't afford to pay your arrears to the Trustee, because you certainly should have noticed that your employer wasn't withholding your plan payments. Unfortunately, filing Chapter 13 can be a painful test of your ability to be responsible for paying a debt on time, and your trustee can dismiss your case for failure to make plan payments. Although you could propose a modified plan, doing this is expensive & time consuming. I would pay as much as you can to the Trustee as soon as you can and continue to pay extra to catch up. As for calling the trustee with an explanation & I promise, that would be a judgment call requiring me to know who your Trustee is.

The answer is that most of the time you cannot discharge student loans. When you file bankruptcy, all debt, even debt that will survive the discharge in bankruptcy, must be listed. If you meet a very strenuous test regarding your situation and ability to pay, then the debt could be discharged. The standard is high and not many student loans are discharged in a bankruptcy case. By some estimates, student loan debt exceeds the amount of credit card debt. This huge and usually non-dischargeable debt is going to be a huge drain on the economy and will keep many people from buying homes and fully participating in the economy. There are proposals in Congress to make some student loan debt dischargeable. You may want to contact your Congressman or Senator in Congress and urge the the rules be changed. At one time, student loans were dischargeable after you paid on them for 6 years, then 8 years and now it is never in most cases. If you did not receive the education that the student loans were obtained for, these loans can also sometimes be discharged. You need to meet with an attorney who can go over your situation and advise you if you might qualify to discharge student loans in a bankruptcy.

1. Failure to repay a loan is not a crime and cannot result in your being put in jail. 2. If these are internet lenders, check if they are licensed by the Illinois Department of Financial and Professional Regulation. If the answer is "no," the loans are not enforceable, the making of the loans subjects the lender and anyone to collect to substantial statutory damages, and you may be entitled to recover damages from them. 3. No legitimate lender or collector will tell you that you will be put in jail if you don't make a payment today. 4. Your account info has been compromised; notify your bank and change it at once.