Are your student loan payments unaffordable? You’re not alone. For many people, student loan bills are one of the biggest monthly expenses, and falling behind can feel impossible to recover from. The good news is that Chapter 13 bankruptcy can often make student loan payments manageable—sometimes lowering them to just $100 or $200 per month.
At Walker & Walker, we help people across Minnesota use Chapter 13 to take control of their debts, including student loans. Here’s how it works.
Chapter 13 Includes Student Loans
Unlike debt consolidation or refinancing, Chapter 13 bankruptcy automatically includes all debts—credit cards, medical bills, personal loans, and yes, even student loans.
Instead of juggling separate payments and high interest rates, your debts are combined into one manageable monthly payment. The key difference? Your Chapter 13 payment is based on your budget—not the amount of your debt or the interest rate.
“But Student Loans Aren’t Dischargeable…”
That’s true, and it’s where many people stop listening. But here’s what most don’t realize:
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You don’t have to pay your student loans during the Chapter 13 plan. They go into forbearance while you’re in bankruptcy.
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They still get paid down. At Walker & Walker, we file a proof of claim for your student loans. This means that while your plan is in place, a portion of your monthly payment is applied toward them, instead of everything going to credit cards or other debts that will eventually be discharged.
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It softens the payment. By the time your 3–5 year plan ends, your student loan balance will often be lower than when you started—even though you weren’t making direct payments.
As Attorney Richard Lee explains, “You don’t have to pay the student loans during the plan, and they’ll be paid down in part by the time it’s done.”
Protection from Collection
Chapter 13 doesn’t just give you a lower monthly payment—it also gives you peace of mind:
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No lawsuits or garnishments. Creditors, including student loan companies, cannot sue you or garnish your wages during the plan.
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No tax refund seizures. Student loan companies can’t intercept your tax refund while you’re in Chapter 13.
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No negative reporting. Creditors cannot add new negative marks to your credit report during the bankruptcy.
Why Consider Chapter 13 for Student Loans?
Even though student loans aren’t wiped out in Chapter 13, the benefits are significant:
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Relief from overwhelming monthly payments
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Protection from aggressive collection
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Time to rebuild your finances
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Partial payoff of student loans during the plan
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The ability to file again later if needed
For many people, that breathing room is the difference between constant stress and the chance to start over.
Walker & Walker Can Help
Our attorneys have helped thousands of Minnesotans get debt relief through bankruptcy. We know how overwhelming student loan debt can feel, and we’re here to give you clear answers and real solutions.
When you call Walker & Walker, we’ll do the math for you and show you exactly what your Chapter 13 payment would be.
Take the First Step Today
You don’t have to keep struggling with unaffordable student loan payments. Chapter 13 bankruptcy could give you the breathing room you need to get back on your feet.
Call Walker & Walker today at 612-824-4357 for a free consultation. We’ll help you find out how much your Chapter 13 payment would be—and whether it’s the right solution for you.
