How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Terry L. Your Own Question

Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2493
Experience:  Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Type Your Bankruptcy Law Question Here...
Terry L. is online now
A new question is answered every 9 seconds

Is there a way to reduce/eliminate the intrest I am paying

Resolved Question:

Is there a way to reduce/eliminate the intrest I am paying on my student loans. I am paying $300 a month just on intrest alone. I need some advice on how to proceed. If push comes to shove, can I file for bankruptcy as a means of eliminating this debt?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.
Chapter 7 normally does not do anything for student loans, absent severe undue hardship. If you are working or are able to work, you probably would not succeed in getting them discharged.

Chapter 13 can pay them down, interest free. With a chapter 13 you can pay them over the next 5 years, consolidating them with your other debts. If your chapter 13 plan, pays only a certain percentage of the debt back, the remaining balance of the student loans will accrue interest and you would pay that unpaid balance back after the case was over. The portion paid thru the case, normally is paid without any interest accruing on that portion.

Your other option is to consolidate your student loan, often locking in a lower interest rate. Otherwise, you can take out an unsecured loan, and pay down the student loans if the unsecured loan interest rate would be cheaper.

The US Department of education has several derferrment and forebearance programs that you could look into as well, based on your individual situation.
Customer: replied 5 years ago.
I am not sure I understand how Chapter 13 works. It is a little confusing. Could you elaborate a little more on this?
Expert:  Terry L. replied 5 years ago.
Chapter 13 will consolidate your debts.
Lets say you have $10,000 in credit cards & the $38,000 in SL's
if you do a 10% repayment plan, your payment to the court would be roughly $88 for 5 years. The credit cards would be discharged, but only 10% of the student loans would be, and you would need to pay the other 90% when you are done.

For a chapter 13 to be approved, you must show the court that you have the payment available, after paying your normal monthly expenses.
Customer: replied 5 years ago.

Am I to understand that my credit card debt would be forgiven and 10% of my student loan debt woudl also be forgiven as well? Is the $88 court cost a one time cost or is it monthly? Last of all, what do you mean by, "when you are done" ? Is this after five years or after the court ruling?

Expert:  Terry L. replied 5 years ago.
The $88 would be your monthly payment to the trustee, who divides the payment between creditors according to the chapter 13 plan terms. This goes to your creditors, so you are paying them roughly 10%. The court filing fee is $274. Your attorney will charge a fee as well.
The other 90% of the credit card debt is eliminated, yes.
You are paying back 10% to the student loans, and the other 90%+interest would remain after the case is done 5 years later.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2493
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.