Student loan forgiveness bankruptcy law is a tricky subject. On Friday, the Washington Post reported on the debut of Ivory Tower, a film directed by Andrew Rossi which explores the forces driving up the cost of tuition and pushing students to take on more debt. It opened it both Los Angeles and New York, and shows the various approaches schools are taking to help make higher education more affordable. According to the post, which is entitled, Meet the filmmaker taking on the ‘unsustainable’ student loan system, explains that Millenials say that student loan debt is their biggest set-back when it comes to debts in general:
When one goes into default or forbearance, frequently the interest is added to the principal, and so the original nut you’re responsible for keeps growing. It’s not just that the interest is accruing, but it’s being compounded. They’re also not allowed to declare bankruptcy.
The answers about student loan forgiveness bankruptcy law aren’t as clear cut as many bankruptcy attorneys would like you to think. Yet, with tuition prices rising higher every day and more and more graduates finding it much more difficult to attain and maintain employment, it is no wonder that many feel hopeless. Bankruptcy can be a four letter word and in most circumstances, it is best to stay away from filing if you have any other options. To many people bankruptcy can sound like a death sentence and to some it can sound like a fresh start. But, is it the right option to get out of paying student loan debt?
There are many hardships that come from filing bankruptcy but also many upsides if it turns out to be the best option available to you. The important thing is to understand the differences between the two types you can file and if you qualify in the first place. There are two types of bankruptcy for which to file your case: Chapter 7 and Chapter 13. To determine which to file, you must first know what you want to get out of the process, and know the student loan forgiveness bankruptcy law.
How Can Chapter 13 Help with Student Loan Forgiveness?