Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Can I get rid of student loans by declaring bankruptcy?”
In what many hope is a sign of things to come, the Illinois State House recently passed a measure that calls on the U.S. Congress to drastically overhaul the current student loan system, specifically with regards to the ability of students to have their loans discharged in bankruptcy.
The measure, known officially as House Resolution 620, says that it is high time for the federal government to change the way it regulates student loans, shielding lenders from the usual risk of bankruptcy that they almost always contend with when granting a loan. The resolution asks that Congress take steps to change these laws and allow student loans to be fully discharged by filing bankruptcy.
As it stands today, student loans are the only kind of consumer debt that is categorically excluded from bankruptcy under federal laws. Though no one believes students should discharge loans in bad faith, the reality is that some degree programs simply drown students in unmanageable levels of debt that they will never be able to repay. Allowing these students to be financially crippled for the rest of their lives harms not only those students and their families, but ultimately society.
Many experts have said that trapping students in huge amounts of debt often has hidden consequences beyond financial stress. These people are far less likely to start new businesses, take risks on getting a new or better job, instead settling for a secure paycheck rather than taking a chance on something that might pay off big down the road.
Though the resolution passed, some legislators disagreed with the intent of the measure, saying that bankruptcy should continue to be off limits to those with student loan debt. Opponents to the resolution claim that by allowing students to file for bankruptcy it would encourage borrowers to not take college or the costs of attending school seriously.
This argument fails to recognize that the same could be said of any category of debt that can be discharged in bankruptcy. Just because individuals can file for bankruptcy on car or home debt does not encourage them to buy cars and simply cast them aside when the bill comes due. The reality is that bankruptcy is an option of last resort and not something that those with other avenues to pursue are eager to entertain.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828 or find more resources here. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
About The Author:
Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues. Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree. After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations. He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte. In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.
“House calls for student loans to be forgiven in bankruptcy,” by Elise Dismer, published at SunTimes.com.
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