Student loans
Bankruptcy is a viable option for dealing with many types of debt, including the massive amount financed for a home purchase, with a few exceptions, the most prominent being student loan debt. Other debts that are nondischargeable in bankruptcy include taxes and other payments owed to the government and domestic support obligations arising from court order. A recent news article highlights the danger of failing to make a prompt repayment of student loan debt. While this may be an extreme case, students taking out loans to finance their higher education should be aware of the importance of prioritizing such debts above all others for which alternative relief, such as bankruptcy, may be available. After graduation, these individuals may be thinking they only need to eventually, when they have the chance to, pay off the “amount borrowed” for their studies rather than the actual amount owed per the loan terms including forbearance interest and late payment penalties.
Disclaimer: This does not constitute legal advice. Please contact a qualified bankruptcy attorney in your jurisdiction if you have questions about your particular situation.
