If you are in bankruptcy and are also in an Income Driven repayment plan for your student loans, you might have a problem. The Department of Education and its student loan servicers are kicking bankruptcy debtors out of their Income Driven repayment plans once they file chapter 7 or chapter 13 bankruptcy. My position and that of the National Association of Consumer Bankruptcy Attorneys (NACBA) is that kicking bankruptcy debtors out of Income Driven repayment plans just because they filed bankruptcy is a violation of bankruptcy law. NACBA will be fighting this practice in court and we hope to stop it immediately.
If you are in an Income Driven repayment plan for your student loans and are thinking of filing bankruptcy, contact a bankruptcy attorney today who also knows about student loans and Income Driven repayment plans. You need to fully understand your options and the possible trouble that filing bankruptcy could cause if you are in an Income Driven repayment plan.