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Bankruptcy & Student Loans


If you are facing overwhelming student loan debt, you are not alone. Millions of other people in Illinois just like you are strapped with student loans they cannot afford and cannot discharge in bankruptcy.


Though it may seem as though you have few options for eliminating student loan debt, with creative financial planning, you may be able to make your student loans more manageable. At Illini Legal Services, we will assess your financial situation and help you create a sound debt relief plan.


Keep in mind bankruptcy is not the right option for everyone. If you do not think bankruptcy is a good route for your student loan debt, then we can also discussdebt management options. This includes loan modification, debt consolidation, negotiations, debt settlements and more. Tell us about your student loan debt problems and we will tell you how to fix them.


Managing Student Loan Debt

Student loans are usually not dischargeable in bankruptcy, unless you can prove that undue hardship makes it impossible for you to pay them. Proving undue hardship is extremely difficult and very few people are successful at doing so. This has left millions of people stuck with student loan debt.


While you will likely not be able to get rid of this debt, bankruptcy can help you make it more manageable while also stopping creditor harassment, wage garnishment, and any repossession or foreclosure actions being taken against you.


In a Chapter 13, you will reorganize your debts into a repayment plan that you will pay back over three to five years. You may be able to include your student loan into your repayment plan. At the end of the repayment period, all of your unsecured debts, such as credit card bills and medical bills, will be discharged; however, you will still be responsible for the remainder of your student loan debt. In a Chapter 7 bankruptcy, your unsecured debts will be discharged, freeing up your income to go toward paying back your student loan. We will help you create the best plan for your unique situation and legal goals.


At Illini Legal Services, we offer a free in person consultation to each of our clients. During your consultation, we will take the time to listen to your financial concerns and assess your case and individual situation. We have four locations to serve you. Contact us today for help!


Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

4 Locations To Serve You - We Serve DeKalb, DuPage, Grundy, Kane, Kendall, LaSalle, and Will Counties

USA Lawyer
Will County Bar Association
Du Page County Bar Association
National Bankruptcy Attorneys
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