Q: Can I file Chapter 13 bankruptcy on $225,000 federal student loans while earning $68,000/year?

A: Possibly. You should consult an experienced bankruptcy attorney. Who can analyze your entire financial situation.

A: Yes, you can file for Chapter 13 bankruptcy even if most of your debt consists of federal student loans. However, Chapter 13 will not eliminate the student loans, but it can provide critical breathing room by restructuring all your debts into a manageable repayment plan over three to five years. During this time, you may only be required to make partial payments toward your student loans depending on your disposable income.

Given your income of \$68,000, household size including two dependents, and existing obligations like credit cards, a mortgage, and a car loan, a Chapter 13 plan could help you consolidate your debts and reduce creditor pressure. The plan won’t forgive the student loans, but it can halt collection efforts, wage garnishments, and aggressive interest accrual while you’re under court protection.

At the end of the plan, your remaining unsecured debts may be discharged, but student loans will remain unless you qualify for a hardship discharge, which is extremely difficult to obtain. Still, filing Chapter 13 could give you time to stabilize your finances and reevaluate long-term repayment options. You may be able to reapply for income-driven repayment after completing the plan. Talk with an attorney who can assess your eligibility and walk you through how your disposable income and expenses will be treated in the means test. This path can offer critical structure and protection as you navigate significant student debt alongside family and living costs.