Do You Have Federal Student Loans in Bankruptcy in Chicago?

Federal Student Loans are not the same as other debts when in bankruptcy.  In fact, if you are considering Chapter 13 bankruptcy in Chicago, there are ways to have your federal student loan payments count towards IDR. Do you know how to negotiate this? At Benjamin Brand attorney in Chicago, they do. Ask them about your IDR payment and how to get on an Income Driven Plan if you are not already on one. These plans can lower your monthly payment and lead to alleviating you of any remaining balance after 20, 25 or 30 years depending on your scenario.

How low can my payment be while in bankruptcy

Federal Student Loans can be modified in bankruptcy in Chicago to be as low as $0 or to take priority discriminately meaning that more money goes towards them lowering your payment to credit cards and other debtors so you get more benefit for the federal student loan. This requires modifying the payment schedule you submit with your Chapter 13 bankruptcy through your attorney in Chicago and completing the necessary documents as needed. This is important because your federal student loan is not discharged in bankruptcy and you want your payments during bankruptcy to count towards the final payment requirement. Since your bankruptcy can take up to 5 years, you don’t want that period of time to be disqualified.

This does not mean your Federal Student Loan can get all the money in the plan instead of other debtors while in a Chapter 13 bankruptcy, but bankruptcy in Chicago can account for this disproportionate payment if you use the right bankruptcy expert. Benjamin Brand is one of the rare attorney in Chicago that can do this for you. They know the process and techniques to get your IDR payment to count and have the payment adjusted to be acceptable to the courts. This process is not just about submitting your financial plan but proper negotiation with the trustee.

What is a Trustee

A Trustee is important to the Chapter 13 bankruptcy in Chicago as they are a court-appointed representative who has decision making power to keep the bankruptcy plan fair for all involved.  Being able to negotiate with the trustee takes talent and experience as well as an understanding of how everything in bankruptcy relates. A good attorney in Chicago knows this and can maneuver to get you the best financial options in bankruptcy.

Chapter 13 Bankruptcy in Chicago

When filing for bankruptcy in Chicago, you want to make sure you are in Chapter 13 in order to take advantage of the federal student loan payment plan options.  A chapter 7 bankruptcy offers you little protection or advantage towards your federal student loan.

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