My girlfriend filed chapter 13 one year ago (in new york state).
She has about 40k in student loan and 15k in credit card debts.
Now she has to pay the student loan plus about half of the credit cards
debts back.

She was told that she had to file chapter 13 (vs. chapter 7) because
otherwise she would still have to pay interests in the student loan. Is that
information right? (that was the only reason, no house or other assets etc.
to protect)
Otherwise I would think chapter 7 would save money?
Thanks!

Student loans are not dischargeable in a Chapter 7 except in cases of "undue
hardship," generally a very difficult standard to meet. Interest stops
accruing once the Chapter 13 is filed.

It sounds as if the Chapter 13 makes sense for her.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* http://www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"peter" <peter@nospam.com> wrote in message
news:tEySb.2728$iJ3.709@twister.nyroc.rr.com... My girlfriend filed chapter 13 one year ago (in new york state). She has about 40k in student loan and 15k in credit card debts. Now she has to pay the student loan plus about half of the credit cards debts back. She was told that she had to file chapter 13 (vs. chapter 7) because otherwise she would still have to pay interests in the student loan. Is
that information right? (that was the only reason, no house or other assets
etc. to protect) Otherwise I would think chapter 7 would save money? Thanks!