Rising Student Loan Debt Seen by Bankruptcy Lawyers

The National Association of Consumer Bankruptcy Attorneys released a survey recently which showed that close to half of all U.S. bankruptcy attorneys have noted a rise in student loan debt for their clients in the last few years. According to the surveyed lawyers, at least a quarter of them reported an increase of 50 to 100 percent in potential clients with student loan debt while the Los Angeles Times reported that 39 percent of attorneys saw an increase of 25 to 50 percent in student loan debt clients. The average loan debt of seniors graduating from colleges and universities in 2010 was in excess of $25,000 as reported by the Project on Student Debt from the Institute for College Access & Success.

The publisher of FinAid.org has reported that U.S. student loan debt exceeded credit card debt for the first time in 2010 and is moving towards $1 trillion. The National Association of Consumer Bankruptcy Attorneys report warns that the situation may become a national problem. In contrast to those with unsecured credit card debt, college graduates with student loan debt cannot easily discharge it through a bankruptcy proceeding. They must prove undue hardship in order to do so, which bankruptcy attorneys say is difficult. A Tennessee congressman is sponsoring legislation aimed at changing bankruptcy laws to rectify the situation.

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Price Law Group has been helping individuals with bankruptcy and other debt relief solutions for two decades. This nationwide team of attorneys has helped more than 100,000 individuals with legal solutions to their debt problems. The firm takes pride in the fact that they have the respect of bankruptcy courts wherever they serve clients. They have offices in California, Nevada, Arizona, New York, New Jersey, Colorado, Missouri, Louisiana, and Kansas; their services include Chapter 7 and 13 bankruptcy filings, credit repair, foreclosure prevention, loan modification, debt settlement, short sale negotiation, handling creditor misconduct, insurance bad faith, and tax resolutions.

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