You should be given a pat on the back and congratulated for taking such a huge step in life and going to college and earning your degree, but rather you were faced with what seemed like endless amount of student loan debt that you’ve been struggling since day one to pay back.
College was expensive and its not seeming like it was as worth it as you had previously imagined, for now at least. Your not paying your bills on time and your credit is suffering, you need to examine your options and discover the steps you can take to help rid yourself from debt. You only have a few things to closely consider. I’m sure you’ve asked yourself and possibly others this question; Can I file bankruptcy on my student loans? The answer is, it depends!
You have the option to take out another loan to pay back this loan but perhaps leave yourself in more trouble in the future unless you can find a better paying job.
You can declare bankruptcy and face a huge loss in your credit score and be faced with problems when shopping, taking out a loan, or using your credit in even the simplest ways possible.
Finally, you can get a student loan consolidation loan. Based on your options you might be seeing bankruptcy as a plausible solution to your current situation but it’s strongly suggested that you look into student loan consolidation first because it could save you a tremendous amount of trouble. Bankruptcy should always be your last option and should never be considered as your way out.
Your not a business, your an individual. When a business goes under and declares bankruptcy, often times the individual or owner of the business will have no long lasting damages or affect, but declaring bankruptcy as an individual is going to affect you for the next ten to fifteen years of your life and could become one of your biggest regrets in life.
But since the bankruptcy laws have gotten tougher, it’s likely you couldn’t go bankrupt on a private student loan. And everyone knows you can’t go bankrupt on a federally backed student loan, don’t they?