Category: <span>Student Debt</span>

The amount of student loan debt now exceeds outstanding credit card debt in the United States. This is not surprising because acquiring a higher education is perceived to be necessary to landing a job in a competitive environment. Further, it is easier to borrow for a student loan than it is to borrow for other purposes, since unlike other types of loans, neither a job nor a co-signer may be needed. Moreover, the government often guarantees repayment of student loans, and it is not easy to obtain a hardship discharge of student loans in bankruptcy. Read more “Hardship Discharge of Student Loans”

There is more outstanding student loan debt in the United States today than there is credit card debt.  The credit card debacle of five years ago is being replaced by a student loan debacle, and the situation is projected to continue.

It is widely believed that you can’t do anything about student loans in bankruptcy.  However, the bankruptcy code does provide for “hardship discharge” of student loans in Chapter 7 under extremely limited circumstances that requires expensive litigation.  (Unless you are old and in terrible shape, you probably won’t qualify.) Read more “Reorganizing Student Loans”