Woodland Hills bankruptcy attorneys are finding more frequently‚ there is a new generation that is learning first-hand what it means to struggle financially.
More often than not‚ those seeking a Woodland Hills bankruptcy aren’t single parents or middle-aged empty nesters. Rather‚ they are those that had just a few short years ago held the most promise: college students.
Or now‚ rather‚ new graduates.
What was once seen as a good investment is now looking more and more like a scam.
As we’ve previously written on our Woodland Hills Bankruptcy Lawyer‚ student loan interest rates are set to double by summer and parents are scrambling too‚ trying to figure out how they will help their child not be immersed in a vicious cycle of debt and predatory credit.
Many students hadn’t pictured filing for bankruptcy right out of college (they were supposed to be embarking on that dream job!). But life has a way of happening‚ and sometimes‚ bankruptcy is the best option to help you establish a fresh start.
According to a recent article on this issue by The New York Times‚ the average amount of student loan debt last year stood at more than $23‚000. About 10 percent of students owed nearly $55‚000. Another 3 percent owed more than $100‚000.
Across the country‚ the total federal student loan balance stands at more than $900 billion.
Although student loans were once seen as “good” debts‚ financial analysts are now likening this to the predatory mortgage loans that landed our country in a housing crisis.
Part of what prospective students need to consider to avoid some of these issues is the true cost of their education. Often in college promotional materials‚ that aspect is something that’s glossed over. These institutions are also banking on the fact that you’re young‚ naive and still believe that if you follow your dreams‚ it will all just work out.
Unfortunately‚ as many new graduates are finding‚ that’s not reality.
While student loans can be difficult to discharge in the course of a Woodland Hills bankruptcy‚ they’re not impossible. Basically‚ you have to show that the payment of the debt causes an undue hardship on you and your dependents.
Proving this can be tough‚ and courts can vary on how they apply it. Generally‚ you’re going to have to show that you can’t maintain a minimal standard of living if you’re forced to repay these debts‚ that you have made a good faith effort to repay them and that there may be additional circumstances to indicate that this current state of financial affairs is likely to last for a long time.
But even in cases where the debt isn’t completely canceled‚ a bankruptcy can automatically provide you protection from collection agencies and could allow you to discharge other debt so that at least you aren’t bogged down with debt from multiple sources.
Of course‚ meeting with an experienced Woodland Hills bankruptcy attorney will help you determine what all your options are and plan your best course of action.
If you are considering filing for bankruptcy‚ contact Woodland Hills bankruptcy lawyers at Cal West Law to schedule your free consultation. Call (800) 568-0707.
Additional Resources:
Degrees of debt: Soaring college costs hobble a generation‚ By ANDREW MARTIN and ANDREW W. LEHREN‚ The New York Times