At this point, a college degree goes hand in hand with staggering loan debt more often than not — and recent statistics show the problem isn’t going away any time soon. The average student loan debt for Class of 2016 graduates was $37,172, 6% higher than the year before.
Debt of this magnitude is downright debilitating. For many young people, it’s a barrier to buying homes or starting families of their own. It often feels impossible to pay off, and in some cases, it is. The number of defaulted federal student loans continues to climb. In 2016, approximately 8 million borrowers gave up on paying more than $137 billion in student loan debt, a new high.
Many people don’t realize it, but bankruptcy can alleviate the burden of student loan debt. The current law makes it difficult to discharge student loans in a bankruptcy, but our Memphis bankruptcy lawyers can put you on the path to a debt-free future.
Relief Through a Chapter 7 Bankruptcy
We can work with you to get rid of your other debts through a Chapter 7 bankruptcy. That way, with your other debts eliminated, you will have the freedom to tackle your student debts, not to mention all the other expenses that are a part of life.
The Power of a Chapter 7 Bankruptcy
A Chapter 13 bankruptcy is another option that helped a recent client. She was in default on $10,000 in her student loans. Her job simply did not give her enough to pay it off, so her lenders gave her the typical offer of $100 a month for life, which she almost accepted. Our Memphis bankruptcy lawyers were able to get her a Chapter 13 payment, which will pay the loan in full in just 60 months, for just a little more than the $100 payment they offered her. Now she’ll be on her way to a better, debt-free life in just five years.
If you’re struggling to pay off your student loans, please contact us today or call (901) 327-2100 to discuss your options. Our Memphis bankruptcy lawyers are happy to answer whatever questions you may have, free of charge.