Is Chapter 13 the Answer to my Student Loan Problem?

Chapter 13 is a reorganization plan for consumers.  In most cases, a student loan borrower will not be able to discharge their student loans in chapter 13.   However, chapter 13 might still be an helpful option for some people.   In chapter 13, the tables are turned on the student loan lender.  Instead of trying to make the payment dictated by the lender, the consumer proposes a plan that fits his or her budget.  Another advantage is that the consumer’s plan usually pays secured creditors (like cars notes and mortgage payments) and taxes before the student loans.  While in bankruptcy, no collection action can be taken against the borrower.  The consumer will still owe the remainder of the student loans at the end of the bankruptcy, but if the lender is unreasonable, chapter 13 can be a legitimate strategy for dealing with student loans.