For as many stories of financial strife that exist, there is an equal or greater number of factors that have combined to create those scenarios. Student loan debt is a perfect example. While many people assume that everyone with student loan debt is in the early portion of his or her adult life, there are many older Americans who also struggle under the same burden. Unfortunately, unmanageable debt is a far more pressing concern for California residents who are nearing the end of their professional lives.
For some older people, student loans linger because the decision to go to college was postponed. For others, unexpected event led to an inability to repay those loans, and the interest simply continued to accumulate over the years. As retirement nears, it becomes increasingly important to regain a solid financial footing.
Personal bankruptcy is an option that many people fail to give the proper consideration. While bankruptcy will not lead to the direct elimination of student loans, it can give individuals the time and space they need to begin paying those obligations down. Bankruptcy helps by leading to the discharge of many other forms of consumer debt. Once those accounts are eliminated, individuals can focus on other debt.
When it comes to financial matters, no two people have the same set of circumstances. Personal bankruptcy will not be a good fit for every California resident, but it is a lifesaver for others. The best way to know if this is the best way to tackle unmanageable debt is to sit down with an attorney and go through the various options. This gives individuals the ability to make an informed decision.
Source: salina.com, "Student loans shouldn't cripple the elderly", Sept. 21, 2015