Has Student Loan Debt Driven You Into Bankruptcy?

Life doesn’t always work out as you intend it to.

For many college graduates, their dreams of securing an education so they are able to get a high-paying job fell apart after they graduated. They entered “the real world” only to find out their job opportunities were not as bright as they’d hoped and their investment in their education might not pay off as soon as they’d hoped – if at all.

Estimates show Americans have accumulated more than $1 trillion in student loan debt and a good portion of it is past due. The average graduate has about $30,000 in debt when they graduate, and many have two to three times that amount. Many expect a crisis on the horizon – one that will put the recent mortgage crisis to shame when the bubble bursts.

So what should you do if student loan debt is creating a financial burden in your life that is heavy enough to leave you considering drastic measures?

Unfortunately, bankruptcy is not an option for all borrowers, but there are exceptions. You can apply to have your student loan debt discharged if any of the following applies:

You are Facing Undue Hardship

Your student loan debt could be dischargeable if you can show it is causing you undue hardship. This can be difficult to prove, and you’re looking at a mountain of paperwork if you try to go this route. However, if you believe you qualify, you should speak to a bankruptcy attorney.

You Attended a Vocational or Trade School

The tuition you paid to attend a trade or vocational school, even if it was paid via a student loan, is treated differently than regular student loan debt. There are also instances in which your bankruptcy attorney can argue you were a victim of breach of contract or unfair business practices, which could result in your loan debts being discharged.

If you would like more information on how bankruptcy can help you deal with trade or vocational school tuition, read this article from Yahoo Finance.

Dealing with Crushing Student Loan Debt

Dealing with financial problems that arose because of too much student loan debt can be frustrating and exhausting. After all, your intention was to improve your education and make your life better, and now you’re facing years of debt.

Bankruptcy could help you deal with your situation. Even if you are unable to have your student loan discharged, bankruptcy could help you eliminate other debts and free up money to put toward student loan payments.

You should not feel desperate or stuck in a life of crushing debt because you wanted to attend school. If you’d like to learn more or you need to speak to someone about your student loan debt and how bankruptcy might help, contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912)-554-3756 (Jesup, GA).