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Banking and Finance Laws Bankruptcy

Court-Based Student Loan Management Programs Can Facilitate Repayment of Debt Under Chapter 13

While bankruptcy traditionally has been seen as a challenging pathway for debtors with student loans, court-based student loan management programs have been adopted to facilitate the repayment and resolution of student loan debt within the Chapter 13 bankruptcy process.

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With student loans ranking as the second highest source of consumer debt in the United States, the federal government took significant measures starting at the onset of the COVID-19 economic crisis to protect student loan borrowers with loan repayment moratoriums. As these moratoriums are due to expire, many debtors will soon be faced with the challenge of how to repay and manage their debt. While bankruptcy traditionally has been seen as a challenging pathway for debtors with student loans, court-based student loan management programs have been adopted to facilitate the repayment and resolution of student loan debt within the Chapter 13 bankruptcy process.

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