There is a massive division in society between older generations and the millennial’s. This age group is one of the first to face an insurmountable amount of student debt. The student debt for the millennial generation is now totalling around $1.4 trillion and this leaves many students unable to pay their debts after graduation. Many recent graduates find themselves in a position where they are looking towards bankruptcy as soon as they enter into the career market. Millennial’s face debt in a variety of formats from student debt to high-interest credit cards and loans. Bearing down on all of that debt and facing ongoing compounding interest often leaves many people in a situation where they cannot pay any of it back.
Declaring bankruptcy can be an excellent way to discharge some loans but a student loan is not discharged during a bankruptcy. If a person is able to show the court that they are unable to obtain the minimal standard of living while paying their monthly student loans, they would not be able to pay off the loan over the length of the student loan or they have made serious attempts to pay off the student loan and were unable to pay back even on monthly payments, they may be able to access a settlement for student loans. Credit cards and other types of debts can be discharged under bankruptcy and this could mean that restructuring debt in a way where monthly student loan payments can be made or discharging other debts under Chapter 7 bankruptcy to give a previous student more breathing room with their debt repayment can be advantageous. If you need assistance filing for bankruptcy and restructuring your debt, contact us today!
This post was written by Trey Wright, one of the best Bankruptcy Lawyers in Tallahassee Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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