In many cases, people know they are struggling with overwhelming debt, but they think there is nothing they can do about it — even via bankruptcy. The reason is that much of that debt they’re carrying is from student loans.
Truthfully, it can be harder to discharge student loans through bankruptcy, and you often need to show that you’re facing undue hardship. But, even if you can’t do that and you won’t be able to eliminate those student loans, they still massively play into your debt picture and may impact your bankruptcy filing.
The average student loan debt is enormous
One thing to consider is that the average debt from student loans is over $37,000, according to some studies, and impacts most Americans. While there are obviously debtors on both sides of the spectrum — those who own just a few hundred dollars and those who owe hundreds of thousands — the average gives you an idea of what most people are facing when it comes to student loans.
Say you have so much debt that paying for your normal expenses and your student loans take up all of your spare monthly income. You may have less debt from other sources, such as payday loans or credit cards, but your student loans are still what help to make that other debt unaffordable. You have to choose how to use your money. You may have no way to pay all your debts, even when you scrape together every last cent you have.
What should you do next?
If you do find yourself in a difficult financial situation like this, it’s very important to understand how bankruptcy can help you get your debts under control — even if you can’t eliminate your student loans. An attorney can help you understand what steps you need to take next.