Millions of Americans are currently struggling with student loan debt. In fact, Forbes reports1 that the student loan default rate was at 13.7 percent as of September, 2014. Falling behind on your student loans can have many negative consequences, including being unable to obtain financing for large purchases or being charged a significantly higher interest rate. While most student loans are not dischargeable in bankruptcy, there are several ways that bankruptcy may be able to help borrowers who have gotten behind on their payments. Chapter 7 bankruptcy2 can often eliminate most of not all of a person’s other debts, freeing up additional resources in order to more aggressively pay down student loans. Some of the types of debts that may be eliminated in bankruptcy include:
For people who are struggling with student loan payments, there may be other options to pursue as well. Recently, the Consumer Finance Protection Bureau3 published some tips4 to help student loan borrowers better manage their student loan debt in the upcoming year. They include:
Contact a Long Island bankruptcy attorney today to schedule a free consultation
Individuals who are experiencing financial difficulty may be able to benefit from bankruptcy. To schedule a free consultation with attorney Ronald D. Weiss, call our office today at (631) 296-0361.