In the United States 43 million people are burdened by student loan debt that totals
more than 1.5 trillion dollars. In Florida 2.4 million Floridians carry school debt
totaling 85.5 billion. Unlike other types of debt, like credit card debt, student loan debt
is extremely difficult to cancel in bankruptcy. Some politicians, like Senator Elizabeth
Warren, have proposed plans to ease the burden of student loan debt.
The U.S. Bankruptcy Court For The Middle District Of Florida has instituted
a program that enables Chapter 13 debtors with regular income to develop plans to repay
all or part of their student loan debt. This program is similar to the Mortgage Modification
Mediation (MMM) program in the U.S. Bankruptcy Court For The Southern District
Of Florida. It includes an online portal where debtors can upload documents and
information that may lead to agreements with lenders to pay what they can afford.
Some debtors may qualify for income-based repayment plans that could result in loan
forgiveness after 120 qualifying payments. Other repayment options can be explored. The
goal is to pay down student loans to the extent possible during the Chapter 13 Case, which
lasts from 3 to 5 years.
The Law Offices Of Todd S. Frankenthal helps clients in financial distress
get a fresh start. The law firm has offices in Fort Lauderdale, Boca Raton, and
West Palm Beach. It represents clients in all divisions of the U.S. Bankruptcy Court
For The Southern District Of Florida.