Why millennials shouldn’t count on bankruptcy for student debt
According to a report by the Federal Reserve Bank of New York, Americans owe more in student loan debt than all the credit card debt combined. That is a huge financial epidemic. One that is felt heavily by millennials, many of whom are facing the harsh reality of the job market. While credit card debt and other types of personal debt can sometimes (but first a debtor must qualify) be discharged through Chapter 7 bankruptcy, this is not true for all types of debt. Millennials may think this is an easy fix for their student loan problem. However there is just one problem.
One big problem.
Student loan debt is (for the most part) not dischargeable. While there is some legislation that is in the works that could potentially change this to help the millions of Americans with student debt problems, that is currently not a reality. And while students wait for legislation to be enacted, there are other options that can be looked at.
An experienced bankruptcy lawyer can also help with debt management. An lawyer can help you strategize and come up with a plan to manage your debt in a reasonable way. While this may not include discharging debt, this could mean a debt repayment plan. You are not helping yourself by waiting for the problem to eventually resolve itself. Your student loan interest is only adding up every month that you skip or miss a payment.
If you are a millennials needing financial advice, considering seek legal counsel.