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Personal bankruptcy may help those with college debt

When people think about those with student loan debt, they naturally may imagine a young adult who just graduated from college. However, more than 16 percent of today’s outstanding college debt is associated with people over 50, research shows. College debt can be particularly detrimental to people in this age range, as they are nearing their retirement years. People who are confronted with large amounts of college debt may benefit from filing for personal bankruptcy in California.

Making the transition from earning income to relying on fixed income through Social Security retirement payments and retirement accounts is often difficult. Adding college debt to the mix makes this scenario even tougher. Even if a person hasn’t accrued college debt in recent years, he or she may feel the effects of neglecting to pay on debt accrued during the 1970s or 1980s. This is because the government may garnish a portion of his or her Social Security benefits in order to pay down this debt.

Even if older individuals may not need to take on college debt for themselves, they may be willing to assume it for their children. This can make it even more difficult to handle the rising cost of living as well as potentially increasing medical expenses during retirement. The only option these senior citizens have is to continue working until they can effectively eradicate the debt and save -- possibly until the age of 75.

When an individual has debt of which he or she can’t seem to get rid, the person might feel powerless. This can be especially scary for those who aim to retire in the next few years. Personal bankruptcy fortunately may help people at all stages of life to finally remove debt that they otherwise can’t overcome. Although a bankruptcy filing typically won’t lead to the discharge of college debt, it can eliminate other types of debt so that one’s student loan becomes easier to pay off in California.

Source: Forbes, "Struggling With Student Loan Debt Over Age 50", Robert Farrington, Aug. 20, 2014

Source: Forbes, "Struggling With Student Loan Debt Over Age 50", Robert Farrington, Aug. 20, 2014

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