Live Chat
During This Challenging Time

We are open for business and remain dedicated to your case! All those working on-site and remotely are still available to answer your questions. The well-being of our clients and staff are vital, so we will provide updates as the situation progresses.

During This Challenging Time Close

Can Bankruptcy Erase My Student Loan?

June 25, 2009

A common question asked regarding bankruptcy is whether student loan debt is dischargeable. The answer is that you can consolidate your student loan with your other bills in a Chapter 13 court-ordered repayment plan. When you file for a Chapter 13 in Austin, Texas, the student loan agency must accept payments under the terms of the Chapter 13. The student loan agency is a creditor and they cannot pursue you for any unpaid portion of the student loan during the Chapter 13. Also, the interest that would normally accrue may be waived during the Chapter 13. So in a way, it is a loan forbearance.

One of the benefits of filing for bankruptcy in Austin is the temporary relief, allowing you to pay a reduced percentage of your student loan and other outstanding obligations. They will not be able to put a lien on your income or assets. But there is a catch. After your Chapter 13 discharge they may pursue you for any portion of the student loan that was not satisfied by your Chapter 13 payment plan. After the Chapter 13 is discharged or dismissed, however, you will have the opportunity to work out a payment plan to pay the remaining balance.

For a free consultation about student loans forbearance and bankruptcy contact Fears | Nachawati via toll free phone a 1-866-705-7584 or via e-mail at


Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears Nachawati.

Contact Us


With offices across Texas, and attorneys licensed in Texas, Florida, Arkansas, New Mexico, California, Illinois, District of Columbia, Missouri and Oklahoma, Fears Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consultation

Live Chat (Online Now)