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More Student Loans Getting Wiped Out in Bankruptcy

Posted By Allmand Law Firm, PLLC || 15-Jul-2013

While it is true there are special requirements to meet in order to get student loan debt discharged in bankruptcy, more debtors are being granted elimination of the debt. Recent reports have reviewed a number of previous bankruptcy filings by consumers over the last few years that have included student loan debt, and the outcome of many filings show there is light at the end of the tunnel.

It seems more judges are granting debtors the ability to write-off the debt. While this may sound impossible, it highlights a problem many Americans are dealing with when it comes to what many financial experts are calling a student loan debt crisis. Analysts claim outstanding student loan debt owed by Americans has ballooned to over $1 trillion. The increase in student loan debt discharges is being recognized by a number of agencies including many leading credit bureaus.

For instance, Equifax reported an increase in student loan debt write-offs in the amount of $12 billion for this year so far. This amount surpasses what was written-off last year: $7 billion. In 2006, the amount of write-offs was $2.6 billion. Some feel judges may be more lenient in granting discharges, but it may also show that more people just do not have the ability to repay such high loans.

Getting student loan debt wiped out may be possible if you meet necessary qualifications. Even if you do not qualify for student loan debt discharge, you may be able to wipe out other debts or reduce what you owe in order to improve your ability to make payments. You may qualify for student loan debt discharge and not know it. Discuss your situation with an experienced Dallas or Fort Worth bankruptcy lawyer.

Categories: Student Loans
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