So You’re Drowning in Student Loan Debt. Is it Time to Exclaim “I DECLARE BANKRUPTCY!”?
Posted on 06/19/2018 at 03:03 PM by William Reasoner
Let’s face the truth: as much as we all love The Office’s Michael Scott, none us of want to admit that we probably shouldn’t have bought the latest magic kit or bass fishing equipment. We’re not all lucky enough to be regional manager of a mid-level paper company, but no matter where you are at in life, it’s likely that you are facing a large amount of student loan debt. I, for one, am on track to finish paying off my student loans when my nine-month old daughter begins college. I don’t mean to be the Toby Flenderson of your existence, but it is true that student loan debt is a thief of joy.
The best case scenario in making college more affordable would be for recent college graduates to unite and push Congress to find some grand solution to the ballooning expense of higher education and loans associated with it; but we all know that Scott’s Tots is definitely more likely to pay for your kid’s college than Congress is to fix this problem any time soon. Seriously, former students are $1.5 trillion in debt for student loans. Seriously.
So what do you do now? Generally, student loan debt is not dischargeable in bankruptcy. Now, this might be changing. This past February, the Department of Education announced that it would review the standard by which student loan debt could be dischargeable, following the lead of bankruptcy judges across the nation. In light of the reality that student loan debt affects half of graduates’ economic lives, now may be the time that bankruptcy can actually help borrowers drowning in student debt rebuild their lives.
No, going through bankruptcy is not as easy as shouting that you declare bankruptcy in your workspace, but now may just be the time for you to give consideration to using the laws of the nation to get you and your family’s finances back on track so that you can start enjoying the little things in life, like waking up in the morning to the sound of crackling bacon on an electric grill next to your bed.
If you have any questions about bankruptcy, please contact one of Dickinson Law's Bankruptcy, Insolvency, & Creditor's Rights Law attorneys.
The material in this blog is not intended, nor should it be construed or relied upon, as legal advice. Please consult with an attorney if specific legal information is needed.
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