As a growing child you dream of becoming a successful in your later years, you imagine yourself climbing to the top of the latter as a lawyer or doctor, or helping hundreds of students as a teacher, the list goes on. Whatever your dream was, it carries you throughout your schooling, and finally you have made it to the university of your dreams. You realize how important your education is, and the fact that where you go is at times just as important as what you studied and how well you did. Even though you graduated with honors and numerous scholarships for your years ahead in school, you are still forced to take out loans to receive your undergraduate, and perhaps masters or doctorate, education. At the time you are glad you did because you not only created memories of a lifetime, but you also tossed your cap having learned more than you could have ever imagined.
Despite your full time efforts, after graduation you are unable to get a job. Perhaps schools in your area aren't hiring any teachers at this time, or you are just unable to find an opening in the field of your dreams. Realizing that it is better to have worked somewhere than remain jobless, you go on to your local café as a waitress or coffee barista. While this pays the daily bills, you are unable to put back even a penny into your old college loans. Interest keeps growing, and before you know it creditors are contacting you and harassing you for repayment. You have no idea what to do, you are broke.
As sad as this story may appear, in a nutshell this is what a lot of recent college graduates are experiencing today after having graduated during a very difficult economic season. According to a study done in 2010 by the Project on Student Debt by the Institute for College Access & Success, the average college graduate will have at least $24,000 of school loans to pay off. When these students continue on to pursue higher education, it is not unheard of that they will be in debt past six figures, hoping that once they become an amazing doctor or successful entrepreneur they will pay off the loans in no time.
Student loans are becoming a huge problem for people these days, and many are considering filing for bankruptcy because they are so overwhelmed with their financial debt. Unfortunately, this may be not as easy as one would hope. For those who file for Chapter 7 bankruptcy, meaning that essentially all of your debt is cleared, student loans fall under the exceptions and therefore cannot be erased by your bankruptcy claim. Chapter 7 bankruptcies are for those individuals who are so buried in their debt, that there is no possible way of repayment and there are numerous exceptions to which type of debt qualifies. Otherwise, there is the option of Chapter 13.
Chapter 13 bankruptcy is a more effective option because rather than eliminating your debt, this is considered to be a reconstruction of your debt; making it more possible to pay off. Not only will it reorganize your debt, but it will also keep those frightening creditors form the loan companies from harassing you for repayment. The repayment period is between three to five years depending on what the court decides for your circumstance, but it is an effective means to catch up with your debt. This is not to say that you can go free spending, though. Filing for bankruptcy means that you are ready to take the necessary measures to addressing your debt, and part of that means living a much more frugal lifestyle. If you are at all weighing the options of bankruptcy or any other forms of debt resolution, contact a bankruptcy attorney near you!