Legal Question in Bankruptcy in California

chapter13 bankruptcy and student loans

I have heard that any future interest may be cancelled on my student loans when I draw up a monthly trustee payment plan with my lawyer. Is this true? Also, at the moment, I have very little disposable income, if any. Am I still eligible to file for Chapter 13 bankruptcy? thank You.


Asked on 5/23/00, 4:38 pm

1 Answer from Attorneys
William McLeod McLeod Law Offices, PC

Re: chapter13 bankruptcy and student loans

First, the student loan question cannot be answered without knowing more information about the loans including how old they are. Second and most importantly, you claim you have no disposable income. If that is truly the case, a Chapter 13 is not in the cards for you. For a Chapter 13 plan to be sucessful, you MUST have sufficient excess income to pay into the plan.

You should sit down with a lawyer and go over all of your options - including a more detailed analysis of your income and expenses.

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Answered on 7/05/00, 12:26 am


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