Many people in Tennessee who find themselves struggling to pay the bills often are in the situation not because of a lack of income but because their income is being stretched too many different ways. Between mortgage payments, medical bills and credit card debt, people can find themselves struggling to get by and contemplating bankruptcy.
In addition to these obligations, another common form of debt, especially among people in their 20s and early 30s — a group commonly known as millenials — is student loan debt. Many people see the majority of their paychecks disappear toward student loan payments that, depending on the degree and length of time spent in school, could be $100,000 or more.
The problem is, as far as bankruptcy is concerned, that most student loan debts are not dischargable in common forms of bankruptcy. Other kinds of debt, such as credit card debt and medical debt, can be reduced or eliminated in bankruptcy; in addition, many people behind on their mortgage payments will be able to stay in their homes.
However, it seems as though the best way to getting out of student loan debt is never to incur it in the first place. A new study appears to show that many millenials realize this as well. According to researchers, about one in every three people surveyed said if they had it to do over, they would have just continued working instead of incurring large amounts of student loan debt.
Obviously, hindsight is 20/20. However, even people with big student loan debt might be able to benefit from filing for bankruptcy. An experienced bankruptcy attorney may be of some assistance when it comes to making these decisions.
Source: Forbes, “Student Loan Problems: One Third Of Millenials Regret Going To College,” Halah Touryalai, May 22, 2013