If your financial struggles are primarily caused by student loan debt, you are not alone. The student loan debt of Americans is estimated to be more than $1 trillion and about $85,000,000,000 is past due. The average borrower has about $30,000 in student loan debt. Some financial experts believe the situation is so bad it’s going to dwarf the mortgage crisis of the last decade.
So What Should You Do if You Feel You Are Drowning in Student Loan Debt?
Unfortunately, student loan debt does not get discharged in a bankruptcy, with a few exceptions. This means that even if you file for bankruptcy, you will still be obligated to pay your student loan payments. Bankruptcy can help you by freeing up other money that you are putting toward dischargeable debts, allowing you to get caught up on your student loan. However, if it’s student loan debt causing most of your problems, this does you little good.
There are instances in which student loan debt can be discharged if you are able to show it causes you undue hardship. More and more student loan debtors are facing this situation because their student loan debt is crippling and there is no way they can afford to pay it.
Proving undue hardship can be trick and requires more paperwork than a traditional bankruptcy, so it’s important to work with a bankruptcy attorney if you believe you might quality for undue hardship.
Trade or Vocational School Attendees
It’s also possible to have your student loan debt treated differently by the bankruptcy court if you attended a trade or vocational school. Tuition paid to attend these schools is handled differently by the bankruptcy court, so the same rules don’t always apply. It might also be possible to build a defense based on breach of contract or unfair business practices if you were misled by admissions coordinators at one of these private institutions.
For more information on discharging trade or vocational school tuition and other private school costs in your bankruptcy, check out this article from Yahoo Finance.
Though facing financial problems that arose because of the cost of your education can feel overwhelming, there are options available. Speaking with a bankruptcy expert can help you evaluate your options and determine what your best next step is going to be. There is no reason why anyone should feel locked into a life of misery just because he or she wanted to attend school and improve their life. We can help you get out from under the weight of student loan debt and build a brand new future.
For more information or to schedule a consultation, contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a consultation.