Countless numbers of people all over the United States turn to bankruptcy protection in order to find relief from uncontrollable debt. For many people, filing for bankruptcy is an opportunity to wipe the slate clean and start anew in hopes of building a secure financial future. Unfortunately, what many people don’t know is that not all debt is dischargeable in bankruptcy. The New Jersey State Assembly is taking measures to ensure that soon-to-be college students are aware of the possible cost of obtaining a student loan.
Unbeknownst to many, the majority of student loans cannot be discharged when filing for bankruptcy protection. While there are some exceptions, many students are not aware of the fact that, even if loan repayment becomes overwhelming, student loans can be a lifelong obligation.
Because of this fact, state legislators are taking measures to educate students and their parents about college loan repayment schedules. Legislative efforts will likely include the publication of an informational pamphlet to be distributed among high school students about to embark on college.
For people faced with mounting debt they cannot pay, bankruptcy protection can be a lifesaving option. But it’s important for those people to know that bankruptcy can’t relieve all types of debt. In fact, there are a number of regulations in force when it comes to filing for bankruptcy in New Jersey, and the process itself can be complicated. Legal representation and the advice of counsel can help debtors to better understand how the bankruptcy process works.
Source: NJ TODAY, “NJ Students Would Be Warned About College Loan Costs Under Proposed Legislation,” July 08, 2011