Debtors are presently denied the opportunity to participate in income driven plans in a Chapter 13 bankruptcy in most of Florida. Instead of allowing for an income based plan, the federal government places these loans in forbearance for the typical five year plan. Do you know what happens to a federal student loan in forbearance for five years? It balloons from 100k to 150k. How does that help to provide a fresh start?
We are attacking this unfairness now in a case we are spearheading in Tampa, Florida. Our client is being denied participation in IBR and Public Service Loan Forgiveness by the DOE’s policy. The time is ripe for our Tampa Judges to address this. While we undertake this challenge, the model plan which does not address this problem is up for revisions and there is comment period which expires August 31.
If you want to help us in our battle for student loan relief, please take 30 seconds to post a comment here before 8/31: http://pacer.flmb.uscourts.gov/localrules/comments-with-form.asp. Just say something like it is unfair for debtors to be disallowed from participating in governmental income based/debt forgiveness plans just because they file bankruptcy.
We need all the help we can get! Thank you!
Please see our Student Loan Survival Center for more information on how to reduce or eliminate student loan debt.