\ Chapter 13 bankruptcy helps people cope with student loan debt | Law Office of Gordon Mosley

There Is No Charge For The First Consultation: 903-266-1843

Law Office of Gordon Mosley
A Bankruptcy & Consumer law Firm
20 Years Experience Helping People Gain A Fresh Start

Chapter 13 bankruptcy helps people cope with student loan debt

Overwhelming debt is a problem plaguing many people in Smith County, Texas, and residents throughout the country. While people have accumulated debt through credit card spending, debts arising from medical emergencies or following the loss of a job and income, many people are financially struggling with student loan debt. According to the Consumer Financial Protection Bureau, the nationwide student loan debt is an astounding $1.2 trillion dollars in the United States.

According to news reports, Americans who have recently graduated walk out of college with an average debt of $35,000 in government or private student loans. While this figure may look like a manageable amount to many people, a large number of students have student loan debts amounting to hundreds of thousands of dollars, often difficult to pay and follow the student well after graduation.

Residents of Smith County in a similar situation should know that despite that fact student loan debts are not discharged through bankruptcy filings, a Chapter 13 bankruptcy can help a debtor substantially reduce loan repayment amounts. This is possible because Chapter 13 bankruptcy allows debtors to consolidate all their debts into a single income-based repayment plan. In fact, a successful Chapter 13 bankruptcy filing can make it possible for a person to pay the same amount of money that the person was earlier paying toward student loan debt to cover both student loan debt along with other debts together.

Many people understand that financial challenges can be crippling, but that does not mean that a debtor should stop exploring options to obtain debt relief. Smith County debtors who have a steady source of income but are struggling with student loan debt at the same time should consider the Chapter 13 bankruptcy route to obtain debt relief. However, they should remember that bankruptcy filings are a complicated area of law and it may be in their best interest to understand the potential positives and negatives before filing.

Source: Post-Gazette.com, "Student loan debtors using Chapter 13 bankruptcy to buy time on payments," Tim Grant, Aug. 2, 2015

No Comments

Leave a comment
Comment Information

Start Fresh - We Can Help!

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Contact Information

Law Office of Gordon Mosley

Tyler Office
4411 Old Bullard Rd.
Tyler, TX 75703

Phone: 903-266-1843
Tyler Law Office Map

Gun Barrel City Office
431 N Gun Barrel Ln
Suite 112
Gun Barrel City, TX 75156

Phone: 903-266-1843
Map & Directions

  • Local: 903-266-1843

  • Fax: 903-581-4038