To be clear, student loans are nearly impossible to discharge in a bankruptcy. However, the ability to repay them could be hampered by other debts a New Jersey resident incurs. Therefore, having those debts discharged in a bankruptcy could free up the necessary income to make the payments.
The most recent numbers indicate that the total amount of student loan debt outstanding in the United States is approximately $1.27 trillion, which eclipses credit card debt and motor vehicle loans by millions of dollars. There also does not seem to be an end in sight. According to one source, another $3,055.19 is added to that already astronomical amount every second.
College students who graduated this year left school with an average of $35,051 in student loans. When this is added to the fact that graduates are outpacing the number of available jobs, it is no wonder that Americans, including New Jersey residents, struggle to repay their loans. More people between the ages of 18 and 29 are making the decision to delay buying a home, having children and getting married. Eventually, these decisions trickle down into other parts of the economy.
Therefore, an inability to repay student loans may affect more than just the students. Businesses could suffer, which could lead to people losing their jobs or their businesses. Filing for bankruptcy would be a good way to obtain a fresh start under these circumstances. Bankruptcy is a complex, and sometimes frustrating, paper-intensive process. It may be beneficial to seek help from an attorney in order to make sure that everything is in order, which could help prevent the bankruptcy being dismissed.
Source: thecollegefix.com, “Student loan debt hits $1.27 trillion, grows $3,055 every second“, Julianne Stanford, Aug. 13, 2015