Articles Posted in Student Loan Debt

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Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”

In the United States, the cost of higher education is ever increasing. If you combine that with the difficulty of obtaining a reasonably salaried job after graduation, it is no surprise that student loan debt plagues graduates long after they graduate. An estimate of student loan debt currently owed in the U.S. is over $1.4 trillion dollars. Individuals with student loan debt may eventually fall prey to financial hardships. If an individual is struggling to pay bills and make ends meet, he or she may consider filing for bankruptcy. Student loan debt is often one of the largest debts a person can try to discharge in bankruptcy. However, it is extremely difficult for student loan debt to be discharged. There are specific and limited circumstances in which student loan debt will be discharged in a bankruptcy proceeding.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What are my alternatives to bankruptcy?”

As anyone with student loans knows, educational debt can cause serious financial stress for even the thriftiest of individuals. With the average borrower in 2016 facing some $37,000 in student loans, it can be hard to know how best to tackle such a big pile of debt. Though payment plans and income-based loan forgiveness programs have been helpful, the reality is that many millions of people continue struggling with how to make ends meet and student loans represent a large part of that problem.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What are North Carolina’s exemptions?”

We’ve previously discussed the difficult road that individuals have when trying to escape crushing student loan debt. Frustratingly, bankruptcy laws have been written to make it nearly impossible to get out from under educational debt. Despite the difficulty, many creative bankruptcy attorneys are exploring loopholes and other untested strategies, some of which have met with success.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”

A recent article in the Wall Street Journal discussed a tactic used by some debtors to escape what many once thought was inescapable: student loan debt. Bankruptcy rules were written in a seemingly ironclad way that prevents the vast majority of debtors from getting out from under potentially massive mountains of student loan debt. Though many have tried over the years, very few have succeeded.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”

In one of the more ironic bankruptcy stories of the year, the filing by the parent company for ITT Technical Institutes has devolved into one of the most paper-heavy affairs imaginable.

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Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”

A single mother with two young boys was only briefly able to imagine a future free of her crushing debt burden. Against all odds, the woman won her case before a bankruptcy court in Alabama. This victory, though short-lived, was a big accomplishment given how skeptical bankruptcy courts are when it comes to granting relief for student loan debt. Sadly, the educational lender appealed the decision and a district court reversed, meaning the single mother will again assume responsibility for her six figures in educational debt.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”

Rapper Dee-1’s newly-released music video opens with a simple statement: “Student loan debt is out of control. In the U.S., over $1.2 trillion is owed in student loans.”

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Bankruptcy Lawyer Bryan W. Stone answers the question “Can I get rid of student loans by declaring bankruptcy?”

It’s long been understood that bankruptcy protections do not apply to the vast majority of student loan debt. The decision was made years ago to shield student lending companies from loss, meaning students are often locked into a lifetime of struggling to pay mounting school-related debts. A recent case out of a bankruptcy court in New York appears to chip away at that protection, at least in one rather limited circumstance.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”

The Obama administration has put its weight behind a recent proposal calling for changes to be made to bankruptcy rules as they relate to student loans. The plan, proposed by the U.S. Department of Educations, calls for a series of reforms to the student loan system, one of which would ease restrictions on when borrowers would be allowed to bankrupt student loan debt.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get rid of student loans by declaring bankruptcy?”

Tuition recovery lawsuits are a recent development that bankruptcy trustees, courts and families are only just starting to contend with. Experts say tuition recovery lawsuits used to be unheard of because court-appointed trustees did not feel it was worth their time to pursue. However, times have changed as college costs have risen dramatically in recent years. Parents feel the need to chip in to spare their kids from monumental student loan debt, something that then deprives creditors of money they feel they are entitled to. As a result, experts say they expect these kinds of claw back attempts to ramp up even further.