While it is true that your student loans will not be eliminated like several other types of unsecured debt, bankruptcy can consolidate your student loan debt. This consolidation will allow a debtor to make monthly payments through a chapter 13 plan, that is within the financial ability of the debtor.
9. Stop a Wage Garnishment.
A Chapter 7 case will immediately stop a wage garnishment. A wage garnishment basically takes away 10% of your weekly paycheck. After the wage garnishment eats up your paycheck, then you most likely will not have enough of your paycheck left to pay your rent, buy food, and support your kids. By filing for a Chapter 7  you will once again be able to  support  yourself and your family.
10. Challenge Certain Claims of Fraudulent Creditors or Padded Debts.
A bankruptcy will allow you to challenge these claims from creditors who are trying to collect more money from you than you really owe. Many creditors charge you so much interest, late fees, and attorney fees that they try to collect twice as much from you as you borrowed. This is insane! A bankruptcy can get these unscrupulous creditors out of your life for good!
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