Can I negotiate an affordable repayment plan for my defaulted private student loan?

Maybe, but I would not count on it. In my experience, private student loan creditors want higher payments than my clients can afford. And if you don't pay them, they can sue you and your co-signer(s).

If there is no other option to dealing with a private student loan, filing chapter 13 can stop student loan creditors from bothering you (federal loans also), and let you pay an amount that you can afford. They usually are not discharged by the bankruptcy unless you can show "undue hardship," but at least you are protected for 3-5 years, you usually get rid of all of your other debts, and when you are finished with the chapter 13, you can concentrate just on dealing with the student loans.

And with chapter 13, there is a co-debtor stay, so that the debt collectors cannot bother your co-signers either, all the time that you are in the plan, which can be from 3 to 5 years. Call our office anytime at 713-772-8037 for an appointment with one of our attorneys, and we will be happy to explain how to get protection from your creditors, including your student loan creditors.

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization