Student loan borrowers in the United States collectively owe nearly $1.5 trillion in student debt. More alarmingly, almost 40 percent of borrowers will default on their student loans by 2023, according to the Brookings Institution. The issue is leading some borrowers to look into bankruptcy in West Palm Beach for relief.
Are your student loans leading you to file for bankruptcy in West Palm Beach? Contact Bruce S. Rosenwater & Associates to weigh your options and choose the best path forward!
It’s difficult to wipe away a student loan in bankruptcy. Currently, borrowers have to prove that paying down the debt would create an undue hardship — but that could soon change. Earlier this year, the Department of Education announced that it would review and potentially alter policies that make it nearly impossible for student debt to be discharged in bankruptcy.
For the past several years, bankruptcy lawyers and borrower advocates have lobbied the Department of Education to change the bankruptcy process to make it easier for borrowers to wipe away their student debt.
There are also many solutions that are alternatives to bankruptcy. For example, federal student loans come with options including deferment, forbearance, or income-driven repayment plans.
While you don’t technically have to go through a lawyer to file bankruptcy, student loan bankruptcy can be an incredibly complex process. Going through it all alone could mean extra time, incorrect filings, and a lost cause.
If you are a student or recent college graduate who is contemplating filing for bankruptcy in West Palm Beach, allow the experts at Bruce S. Rosenwater to help you. We know how difficult it can be to pay back enormous loans, and our team can help you decide which path is the best for your situation. Call us today at (561) 320 – 8219 to determine what options are optimal to help you regain your financial footing.