Many people who have graduated from college realize that they are in over their heads with debt. For some, not getting a job in their field immediately means relying on support from minimum-wage jobs or those that barely pay the bills.
On top of student loans, many college graduates have credit card debt. After all, it isn't easy to go to school, work, pay the bills and afford everything that goes into an education, even if you have a full ride.
For some, the challenges of living in debt after college holds them back. It may mean they can't buy a home or won't be able to participate in activities they love until they get their finances in order. For those who have unsecured debts, Chapter 7 bankruptcy could be a solution.
Can Chapter 7 bankruptcy help with school debts?
If you have student loans, Chapter 7 bankruptcy isn't likely to eliminate them. However, if you took out private loans, have credit card debt or have other debts that are impacting your ability to pay your school loans or buying a home or other items you need, then bankruptcy could be a good option. Yes, it will negatively impact your credit for a short time, but in a few years, you'll be back to a positive financial position.
If you're struggling to move forward after college, a bankruptcy plan could be the right answer. In serious cases, some may even be able to have their student loans discharged, though this is rare. You can speak with your attorney about the options open to you.