| When you file for Chapter 7 bankruptcy, you will be | | | | months), but your lender may require that you |
| able to discharge most of your debts. There are a | | | | submit proof that you are actively seeking work. |
| few, though, that cannot be erased through | | | | 3. A student loan consolidation is another option that |
| bankruptcy. For example, in most cases, you will still | | | | can help you effectively manage your student loan |
| be responsible for student loan debt. If you owe a | | | | debt. Consolidations are credit based, so you may |
| large amount of money in student loans, this can | | | | have to wait a year or two after your bankruptcy |
| prove to be a challenge. | | | | discharge to take advantage of this option. If you |
| There are still several options you can take | | | | can get a consolidation loan, though, all of your |
| advantage of to manage your student loan debt. | | | | student loans will be lumped together, and you will |
| 1. If you find yourself unable to make your | | | | only have one payment each month. More |
| payments, you may be able to apply for a | | | | importantly, you can use a loan consolidation to |
| forebearance. This postpones your payments for a | | | | extend the term of your loan to thirty years, instead |
| specified period of time, usually between six and | | | | of ten. Although you will pay significantly more in |
| twelve months. Keep in mind, though, that interest | | | | interest, this will serve to reduce your monthly |
| will still accrue while your loans are in forebearance, | | | | payments. |
| so your payments will end up being a bit higher after | | | | Even though you typically can't discharge your |
| the forebearance period has ended. | | | | student loans through bankruptcy, you can use these |
| 2. If you are unemployed, you may also be able to | | | | techniques to manage your student loan debts so |
| obtain a hardship deferment. This frees you from | | | | you can get back on the path to financial stability. |
| making payments for a short period (usually six | | | | |