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Bankruptcy May Be Your Option

Increases in student loan discharges through personal bankruptcy

People in the United States often see a college education as a fail-proof tool to financial security and professional success. With hope for their future, many people in Oklahoma and across the country make an investment by taking out student loans to finance their dreams. Unfortunately, quite a few students are struggling to pay back the loans. While in the past there were few options for release from the debts through personal bankruptcy, more people have been able to see some relief through this path over the course of the last year.

Under bankruptcy law, a person cannot seek a discharge of a loan used for educational benefit without proof of extreme hardship. However, some borrowers are questioning the meaning of "educational benefit." For example, some who borrowed money to attend a school that was not accredited or who used the loan to study for a test such as a bar exam have been able to successfully argue that their loans are more comparable to consumer debt.

Unfortunately, there are some students who, once completing their education, have to factor in how they will pay their loans while planning for the future. Some choose to return to their parents home because they cannot afford to pay their student loans in addition to rent. Often, they will postpone getting married or starting a family.

Frequently, people in Oklahoma who are only attempting to better their life are saddled with debt that prevents them from seeing any measurable improvement. In some cases, they may be unable to find employment that matches their education but still must pay back their student loans. For those in this situation, an experienced professional can help examine their case. Following recent court rulings, people may have more options -- including personal bankruptcy -- available to them.

Source: thestreet.com, "Student Loan Borrowers Increasingly Turning to Bankruptcy to Alleviate Burden", Amanda Schiavo, Dec. 31, 2016

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