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Posts tagged "Chapter 7 Bankruptcy"

Bankruptcy potentially an option for student loan borrowers

Any number of personal setbacks could cause student loan borrowers in Oregon to fall behind on their payments. Although people largely believe that student loans cannot be discharged by a bankruptcy action, cases of undue hardship might convince a judge to provide a debtor with relief from student loans.

Study finds student loans debt may contribute to bankruptcies

Some Oregon consumers who file for bankruptcy may be carrying significant student loan debt. The company LendEDU found that nearly one-third of people who filed for Chapter 7 bankruptcy had student loan debt, and on average, almost half of their total debt was student loans. Even though most student loans cannot be discharged in bankruptcy, the filings appear to be increasingly driven at least in part by these obligations.

Bill could help student loan debtors

People in Oregon who are struggling with student debt might have the opportunity to discharge that debt in bankruptcy if a bill introduced in Congress is successful. The Student Borrower Bankruptcy Relief Act of 2019 has the support of one Independent, one Republican and 14 Democrats.

Dealing with student loan debt in bankruptcy

For many people in Oregon struggling with insurmountable debt, student loans may comprise a significant portion of the overall burden. Across the country, over 44 million people collectively owe $1.5 trillion in student loan debt, forming the second-highest category of consumer debt. While home mortgages continue to take the lead, student loans outweigh credit card obligations for Americans nationwide. Despite the significant cost of student loan debt, it is one of the most difficult forms of obligation to discharge in bankruptcy.

Bouncing back from Chapter 7 bankruptcy

Many consumers who are struggling with debt in Oregon believe that filing for bankruptcy would make their problems even worse. This is not necessarily true for those with a lot of unsecured debt since many people who file for bankruptcy find that their credit scores begin to go back up quickly after bankruptcy.

Crucial facts to know about bankruptcy

The number of personal bankruptcy filings declined by 1.8 percent in 2017. However, financial professionals say that Oregon residents and others who want to file for bankruptcy should spend time thinking through the entire process. This means considering what happens before and during a bankruptcy as well as what happens after a case concludes. For example, debtors must go through credit counseling prior to asking for bankruptcy protection.

Changes proposed in bankruptcy laws for student loans

In April, Oregon congressman Peter DeFazio introduced an act that would make it less difficult for people to discharge student loans in bankruptcy. These types of loans are presently not dischargeable in most cases although in a few cases, people have successfully done so. "Undue hardship" is the standard by which it is decided whether a student loan debt is dischargeable, and the proposed act would broaden that definition.

Requirements to discharge student loans in bankruptcy

Many people in Oregon struggle to repay their student loan debts. Unlike other types of unsecured debts, such as credit card balances or medical bills, student loans are normally not dischargeable in bankruptcy. However, student loans may be dischargeable in some cases.

Bankruptcy: Debt a growing concern for retired individuals

Carrying substantial amounts of debt can be a burden for many individuals in Oregon and elsewhere, regardless of age. However, those who are saddled with debt upon entering retirement may face additional challenges that often come with living on a fixed income. Since monetary struggles could have a devastating impact on the life of a retiree, those experiencing such troubles could find it helpful to speak with a bankruptcy attorney for advice on how to pursue some much-needed relief.

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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.

The Law Office of Kim Covington

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