There is a mistaken impression among people owing student loans that bankruptcy will provide them no benefits. Indeed, you will likely never be able to discharge such loans in their entirety. However, as one particular news article mentions, it is still possible to use bankruptcy as a tool to make your student loans more manageable.

Under Chapter 13 bankruptcy, it is possible to treat these differently than other unsecured debt. And such a filing can in some instances provide relief from other debts, thus allowing you to keep up with your student loans.

Why Chapter 13 is sometimes your best alternative

Chapter 13 allows for you to pay disposable income to a trustee, and the trustee, in turn, will distribute that income to your creditors. While many individuals struggling with debt would prefer to file Chapter 7 bankruptcy to get out from under particular types of unsecured debt, Chapter 7 may not be for everyone.

In some instances, the laws may not allow you to qualify for Chapter 7 bankruptcy. To qualify, your income must be low enough to allow you to pass a means test.

Even if you do qualify for Chapter 7 bankruptcy, Chapter 13 may still be preferable. Chapter 13 may prove a better tool for protecting their home and other secured assets.

Analyze your options before making any assumptions

There is no way to tell which method is preferable without closing examining your personal financial circumstances. Every situation is different. However, it’s important not to assume that you can do nothing about particular debt like student loans without understanding your legal options.

It could prove beneficial to speak with a skilled consumer bankruptcy attorney to decide if a Chapter 13 filing is best for you.