The housing-debt bubble that exploded in 2008 had major repercussions for the global economy. Now, financial experts are convinced that another crash could be forthcoming due to another debt bubble – student loans.
Credit agencies report that over half of all student loan accounts are currently being deferred. That means the person who owns the debt isn’t paying the principal or interest temporarily. Are you currently a part of this statistic? Are you struggling to pay off your debts? Have you considered filing for bankruptcy? If so, then there are a few things you need to know.
Student Loan StatisticsRight now, over 44.7 million Americans are bogged down with student loan debt. In all, borrowers owe over $1.56 trillion. Most borrowers have about $32,000 each, and their payments are nearly $400 a month.
When a borrower can’t make their student loan payments, then they may opt to postpone them through deferment or forbearance. During this time, the borrower doesn’t have to make payments, but the interest on these loans will continue to increase. As a result, Americans owe more on student loans than they do on credit cards or automobiles.
These facts have pushed many politicians to consider passing bills to cancel all student debt. Until that happens, though, most Americans will continue to struggle to pay their debts.
Can Bankruptcy Help with my Student Loan Debt?When you aren’t able to pay your debts, it feels like a huge weight is on your shoulders. You may have considered filing for bankruptcy to help you through a difficult financial time. Here’s what you need to know – federal student loan debt cannot be discharged through bankruptcy. If you obtained private student loan debt after 2005, then it can’t get discharged through bankruptcy, either.
Despite that, you might still benefit from filing for bankruptcy if you have an accumulation of other debts. An experienced bankruptcy attorney can help you determine if filing for bankruptcy is right in your financial situation. With success, your other debts can get cleared, which means you can devote more money to paying off your unforgivable student loans.
Are You Considering Filing For Bankruptcy?
If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.