With the ever-increasing costs associated with college tuition, the price of pursuing a higher education has left many facing prolonged periods of monetary struggle. When coupled with other forms of debt, such as credit card and medical bills, high amounts of student loan debt could leave a person in Tennessee living a lesser quality of life. While discharging student loans in Chapter 7 bankruptcy could prove challenging at times, proposed changes to bankruptcy laws could provide many students with some much-needed relief if they are passed into law.
Recent studies indicate that more than 40 million individuals that carry student loan debt, and the amount of outstanding debts in this area sit at around $1.4 trillion. Under current law, discharging similar debts in bankruptcy can be a challenging task, as a person must be able to prove that continuing to owe student loans would cause undue hardships. However, legislators have proposed changes to how undue hardships are determined.
To prove undue hardship, those who carry student loans must be able to show that they are unable to maintain a certain standard of living. In addition, their financial obligations must be expected to persist for prolonged periods. Should legislators decide to expand the definition of undue hardship, more individuals may be eligible for relief from the burdens of debt through bankruptcy.
Overwhelming financial burdens can have a detrimental impact on a person’s life. Those who experience similar issues may wish to explore the available options for relief, and they could choose to speak with an attorney for guidance in choosing a path. An attorney in Tennessee can evaluate a client’s situation, provide information on current laws and possible changes, and assist him or her in pursuing relief through the necessary channels, including Chapter 7 bankruptcy.