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.