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mmdesq, Attorney
Category: Bankruptcy Law
Satisfied Customers: 518
Experience:  Attorney with 13 years experience.
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I want to file chapter 13 bankruptcy and want to know if my

Customer Question

I want to file chapter 13 bankruptcy and want to know if my finances qualify me to file and have a plan accepted by the trustee/court.
I currently make $155,000 per year. My wife does not work and goes to school full time online, and I have two young children (11 and 8). I bring home about 8000 a month after taxes.
I have 322K in debt, of which 275K is my wife and my student loans. The rest are our car notes and just 4000 total in taxes that we are making installment payments on.
We have about $1000 in disposable income at the end of the month (perhaps a few hundred more if we buckle down) after paying our monthly bills and food, etc. (we live in Northern California, Solano County/Benicia, to be specific, and rent is expensive---$2400/month).
Would we qualify to file a chapter 13? If so, what kind of payment would we have to make every month?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  mmdesq replied 1 year ago.

Good Evening,

I will try to best answer your question.

You would be able to restructure your student loan payments while you're in the chapter 13 bankruptcy. However, you will not be able to discharge any of your student loan debt. Once the chapter 13 is over you'll be back in the same position. I'd recommend looking at the income sensitive repayment options under the federal student loan programs. That may be a superior way of dealing with the student loan debt issue. Unfortunately students loans remain nondischargeable in bankruptcy. The only thing of 13 would do would be give you a temporary restructuring of debt payments.