Do you have an extensive amount of school debt? Having steep student loans is not uncommon and it is becoming increasing more frequent for bankruptcy applicants to have a considerable amount of student loans. As many people already know, this type of debt cannot be discharged through bankruptcy- there is one small exemption but it near impossible to qualify for. Recent surveys have shown that more and more people with student loan debt are now filing for bankruptcy, which is not that surprising considering the average person can accumulate over $100,000 in debt. With debts that high, it is no wonder people are have difficulties managing their finances.
Why are there such strict restrictions when it comes to discharging student loan debt. It seems that it is sometimes easier to eliminate tax debt that it is to eliminate school debt. The Los Angeles Times put out a February issue that discussed this topic, they highlight a trend that student loans are forcing more and more people to consider filing for bankruptcy during these tough times. The article explains that more than 4/5 of all bankruptcy attorneys have seen a significant rise in the number of clients with student loan debt. Out of those attorney, ¼ of them report that their number of potential clients in these cases have increased by 50%-100%.
It is not difficult to imagine why the amount of student debt is on the rise- colleges are becoming increasingly more expensive and the amount of financial aid available has decreased for students attending public universities. Not to mention, the struggling economy today is making it very difficult for college graduates to find jobs, especially in their field. On average, a 2010 college graduate had accumulated over $25,000 in debt.
Student loan debt can be crippling, especially if individuals do not have the means to stay on top of their payments. Since this type of debt cannot be discharged through bankruptcy, it can unfortunately roll over into as unpaid debt well into your adult years. There are fears that increasing student loan debt may be the next reason for an economy meltdown.
If you have significantly high student loan debt, speak to a Charlotte bankruptcy attorney at our firm today to see if you qualify for discharge. If not, you can learn about the other types of debt you may be able to eliminate through bankruptcy so you can manage to pay your monthly student loan balance again. If you are overwhelmed with debt, don't lose hope. Here Jack G. Lezman, P.A., we can help lead you out of debt. Contact our Charlotte bankruptcy firm today for the personal attention that you need and deserve. Call today!