It’s certainly no secret that millions of college graduates are struggling to repay their student debts, but one feature of bankruptcy law has blocked many of them from achieving financial relief:  In general, these debts are not dischargeable.  But a couple of U.S. Congressmen have jointly proposed a bill that could change that.  House Representatives Steve Cohen (TN) and Danny Davis (IL) are behind an effort to update the current Bankruptcy Code to allow for the discharge of student loans from private lenders.  While this would not provide comprehensive relief, private lenders account for around $150 billion of the total $1 trillion in student debt, and the bill would provide substantial help for many.

Don’t start celebrating yet, however:  This isn’t the first time that this kind of legislation has been proposed—and it may not be the last.  But if you’re having trouble with student debts, you may have more options than you know.  Chapter 7 or 13 bankruptcy can clear away many of your financial burdens, and in certain cases—such as severe hardship—it may even be possible to discharge that pesky student debt altogether.  Call Long Island Chapter 7 lawyer Ronald D. Weiss today.