[dannyneedshelp]

What will happen in the following two scenarios:

Scenario 1: someone defaults on their student loans and ends up in wage garnishment. After this happens the person files for chapter 13 bankruptcy with a repayment plan of five years for unsecured debt (except student loans since they are not dischargeable).

Question: will the wage garnishing continue throughout the five year payment plan to avoid the student loan interest from accruing to the principal during the fiver years?

Scenario 2: The person is current on student loan payments and files for chapter 13 bankruptcy.

Question: What steps can the person take to avoid interest from accruing on the student loan over the five year plan?

*what, if any, steps can someone take (before or after filing) to avoid interest accrual of a student loan during the chapter 13 repayment plan?

[George_1950]

Welcome to AMHD. It is difficult to answer, not having all the facts. You will formulate a Chapter 13 Plan; it may pay the student loans 'within' the plan, or 'outside' the plan. I believe it can be prepared either way, but it occurs to me that if the student loans are 'within' the plan, it crowds out other unsecured creditors with the result of costing you less. What you pay also depends upon your income, as well.