Corash & Hollender, P.C.

It's frustrating that student debt isn't addressed in bankruptcy

For a moment, we would like you to consider the life of a young adult who just graduated from college. He or she is going out into a world where the job market, though much better than the depths it plunged into in recent years, is not exactly forgiving. They have accrued an immense amount of debt as a result of their college education, and they are just trying to find a job to start their career.

They have to get their living situation figured out. They may need a new car. They may have credit card debt on top of this that makes their financial picture a bit more convoluted than it may seem. And even once they land that job, they aren't exactly earning the type of money that allows them to wipe away all of their debt in one fell swoop.

Now, given that this is the scenario that many young adults face in today's world, don't you think that a bankruptcy filing on their behalf should at least address their student loan debt?

That's the problem with the way current student loan debt is structured. There is practically no way for it to be discharged through the bankruptcy process. Only in extreme circumstances can this form of debt be addressed and potentially discharged.

It's a question that seemingly has lawmakers flummoxed, because the issue of student debt during bankruptcy has not been addressed officially. No new rules have been put in place to try to alleviate some of the financial burden on young adults who are just trying to get by. We can only hope that as this discussion continues to gain steam and some new ideas come out from lawmakers that it will be appropriately addressed.

Source: Wall Street Journal, "Should Bankruptcy Address Student Debt?," May 7, 2015

No Comments

Leave a comment
Comment Information
Arrange a Free Consultation Now ยป

Free Initial Consultation - Credit Cards Accepted

The secret to our success is that we care about our clients. Contact us online or call our law firm at 718-442-4424.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Visit Our Office / Connect With Us / Review Our Firm

1200 South Avenue, Suite 201
The Corporate Park Of Staten Island
Staten Island, NY 10314

Phone: 718-442-4424
Fax: 718-273-4847
Map & Directions

7317 13th Avenue
Brooklyn, New York 11228

Phone: 718-442-4424
Fax: 718-273-4847
Map & Directions

Leave a review

Review Us
Back to Top