David G. Weil Bankruptcy Law Blog on Lawyers.com

Report Reveals that Student Loan Debt Leading to More Bankruptcy Cases

Wednesday, February 8, 2012 by David G. Weil

Most people have already seen news reports regarding the
crushing amount of student loan debt that dogs graduates for years at a
time. Recent statistics have revealed
that collectively, more than $1 trillion in student loan debt is owed in the
United States, and this mountain of debt has surpassed credit card debt for the
first time. According to a recent
report, bankruptcy lawyers are now noticing that more and more people are
filing for bankruptcy protection because of unmanageable student loan debt.

The report was issued by the National Association of
Consumer Bankruptcy Attorneys, or NACBA.
Specifically, the report stated that 40 percent of bankruptcy attorneys
who responded to a survey stated that they have seen at least a 25-percent
increase in the number of people pursuing bankruptcy because of their student
loan debt that they cannot afford. This
number is actually expected to rise in the coming years.

Unfortunately, not many people understand that student loan
debt cannot usually be discharged in a bankruptcy case unless relatively rare
circumstances are present. Therefore,
those who are seeking bankruptcy protection are doing so in order to eliminate
all of their other debts to free up more money to pay their student loans every
month. This is seen as an increasingly
vicious cycle, and many are calling for significant reforms to bankruptcy laws
as they relate to student loan debt in the United States.

San Diego Bankruptcy Lawyers

Clearly, student loan debt is something that will basically
never go away for many people, especially if private loans that are issued come
with variable rates. People stuck in
this position can be prevented from ever truly advancing themselves unless they
figure out a way from under mounting financial pressure. Fortunately, there are almost always
strategies that can be employed that help struggling consumers.

If you are struggling with debt in general and you don’t
think there’s a way out from under it, you need to seek the help of San Diego bankruptcy lawyers who
have helped thousands of consumers obtain a fresh financial start. Contact the Golden State Law Group today to
schedule a free initial consultation.

Posted at 14:01 PM

Topic: Bankruptcy