For some people who are struggling with big student loans, there’s a lot of “he said, she said” going on that’s confusing when it comes to whether you can get debt relief.

People may say, in general, that bankruptcy “doesn’t help” when it comes to student loans, but that’s an oversimplification. Here are four key things to know about a common chapter 13 process that can help you plan to handle a problematic student loan debt.

Not Discharging Debt?

It’s true that in general, the chapter 13 process doesn’t allow a borrower to fully discharge their student loan debt. What it does do is help provide a few years of breathing room for paying the loan off over time.

Here’s why that’s important. There’s a general timeline that applies to many people with crushing student loan debt. They complete their education and they get out in the job market, but they’re not able to earn big salaries right away. They may be completing unpaid internships that will lead to bigger career moves down the road, or trying to get the initial experience that high-quality jobs require. The job search process may not be a short process for them.

By getting a few years of forbearance, it allows the student loan borrower to get to a place where the average monthly payments are going to be manageable.

Reducing Payments

Like other kinds of large debt, for instance, mortgage payments, student loan payments can, in some situations, be reduced by a chapter 13 plan. This is another way to lessen the pressure associated with these kinds of debts.

Stopping Collections

Some people with student loan debt are no stranger to the harsh, hostile, aggressive and sometimes abusive practices of debt collectors. Debt collectors may garnish paychecks, call at all hours, or even make threats that are sometimes just a lot of hot air.

The key is that some forbearance plans can stop collections for the time being, to allow for calmer and smoother debt repayment processes when conflict has reared its head.

Positive Impact on Credit

For many of these borrowers, it’s next to impossible to rebuild good credit while struggling with a mountain of student loan debt.

The forbearance process basically allows these borrowers to clear their names and rebuild good credit, so that when their payments must resume later, they are in a better place and more in a position of power.

Call Hedtke Law Group for help with student loan debt! We will explain what you’re facing, and help you to put the best plan in place.