National Student Loan Debt Leading to More Bankruptcy Filings

Think that you are the only person with massive amounts of student loan debts? Think again. The overall national debt accrued by student debts has increased dramatically over the past decade and shows no signs of stopping. As a result of this overwhelming national debt, state lawmakers are being petitioned to change bankruptcy laws to accommodate for the changing times.

According to several studies, the estimated national debt for student loans is $1 trillion. This is more than 14 times the amount that it was fifteen years ago. In fact, it is even higher than the national estimate for credit card debt which is currently $798 billion. A survey of bankruptcy attorneys revealed that they are seeing more clients that want to file for bankruptcy due to student loan debts. However, current laws prevent most people from absolving such debt, which only pushes them deeper into a financial ditch. In some cases, although rare, student loan debt can be discharged. If you want to file for Chapter 7 due to your student loans, contact the Malaise Law Firm to discuss your options with a San Antonio bankruptcy attorney.