While many forms of debt including credit card debt can be discharged in bankruptcy cases, student loan debt cannot be removed through this type of legal proceeding absent relatively rare circumstances.
San Diego, California (PRWEB) June 21, 2013
The San Diego bankruptcy attorneys at the Golden State Law Group help people and businesses that have encountered financial difficulties by guiding them through bankruptcy cases that are filed under Chapter 7, Chapter 11 and Chapter 13 of the United States Bankruptcy Code. The firm also helps clients deal with other forms of debt relief. The attorneys at the firm would like to respond to a recent report published by CBS News that concerned the continued increase in the number of borrowers who are defaulting on their student loan debts so that people struggling with student loans realize that they need professional help.
The report, which was published on May 22, 2013 and was entitled, “Student loan defaults rising despite way out” provided several statistics that are extremely troubling in nature. These statistics included data from the New York Federal Reserve Bank that stated that the number of people who are at least 90 days past due on student loan payments has jumped by a factor of 3.2 percent in two years, rising from 8.5 percent in 2011 to 11.7 percent currently.
In addition, the report stated that when student loan accounts that are not currently in an active repayment cycle are excluded from this percentage that the 90-day delinquency rate is actually more than 30 percent. That constitutes a rise of more than 10 percent since 2004. Overall, Americans currently owe approximately $1 trillion in student loan debt, which is higher than any other form of consumer debt except for mortgages.
“Student loan debt is continuing to grow in terms of the severity of this problem. People who find themselves behind in payments often mistakenly feel that there is nothing they can do about it. We encourage people in this position to look into options for relief so that they can get back on top of their finances,” said David Weil, and attorney with the firm.
The San Diego bankruptcy lawyers at the Golden State Law Group are concerned about this rising percentage, but it is a reflection of the nature of this debt. While many forms of debt including credit card debt can be discharged in bankruptcy cases, student loan debt cannot be removed through this type of legal proceeding absent relatively rare circumstances. People who are struggling with student loan debt are encouraged to seek professional help so that potential strategies for financial recovery can be identified and pursued.
About the Golden State Law Group
The Golden State Law Group is a law firm in San Diego, California that’s comprised of a team of San Diego bankruptcy attorneys who provide legal help to consumers and businesses. Specifically, the attorneys at the firm provide help to consumers in the legal areas relating to financial problems including student loan debt problems, credit card debt, medical bill issues, consumer bankruptcy, business bankruptcy, tax debt issues and personal injury cases.