Student Loans And Bankruptcy: Be Informed

It is becoming increasingly common for people in Arlington and around the state of Texas to have substantial amounts of student loan debt. Obtaining an undergraduate degree, for example, can yield tens of thousands of dollars in student loan debt; for those who go on to get one or more graduate degrees, amounts of over $100,000 are not unheard of.

At prevailing interest rates, not only is it likely that you will be paying off your student loans for many years to come, but the loan payments will eat up a large portion of your income. There are some steps you can take to alleviate this issue, and by speaking with an experienced Fort Worth bankruptcy lawyer, you can get a good idea of how to tackle the problem.

Is Bankruptcy Your Best Option With Student Loan Debt?

Unlike other kinds of consumer debt, such as credit card debt or medical bills, student loans are not easily dischargeable in bankruptcy. However, people who have to devote a large portion of their income to make student loan payments often find themselves making ends meet by using their credit cards to supplement the income that they have. This can lead to debts that can be discharged in bankruptcy, even if student loan debts cannot.

If you have trouble paying back your student loans, there are nonbankruptcy options available to you. You might try to refinance the loans, apply for a deferment or seek a student loan forbearance. This could temporarily lower or stop your payment requirements, but interest will continue to accrue.

Please contact the Steele Law Firm to speak with an attorney about your options under bankruptcy laws. Reach me at 682-990-9372 or via email today for a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.