It is extremely unfortunate that filing for bankruptcy has such a negative connotation to it, as it is an important tool for debt relief. There are people throughout San Antonio who find themselves overwhelmed by financial problems of one kind or another. They turn to a bankruptcy attorney to discuss their options and, many times, ultimately file for bankruptcy. Though bankruptcy may not discharge all of their debts, it is still a fresh start.
One big category of debt that is largely untouched by bankruptcy is student loan debt. Unfortunately, most student loans will remain after someone files for bankruptcy, and while that may be a majority of a person’s debt, having little other debt will certainly help to relieve some of the pressure and stress of financial problems.
Though the decision to file bankruptcy may not be easy to make, it may be something to consider, even if a majority of your debt is tied up in student loans. While that decision is ultimately each individual’s to make, it is important to either file or not file with a good understanding of the pros and cons of filing. By working with a bankruptcy attorney, it is possible to get a good picture of both the process and likely outcomes of bankruptcy.
With more than $1.2 trillion in student loan debt out there, the federal government and financial institutions may want to change how it deals with student loans in bankruptcy. For now, however, student loan debt is largely untouched by bankruptcy filings.
Source: Forbes, “Debt Demons Discover Student Debt,” John Wasik, July 16, 2014