Bankruptcy and Graduation

Bankruptcy and Graduation "On the surface, these two topics appear to be diametrically opposed. In reality, they share a great deal in common. When a student graduates from college, they embark on a new phase of life and begin a career. Similarly, after declaring bankruptcy, a person will receive a new beginning and may even begin a new career, but their financial future will undoubtedly change. Now that the school year has concluded, many young adults are graduating from college and entering a jobless world. In the past few years, as a result of the national unemployment rate, a large number of people have resumed their education by obtaining degrees in other fields or by pursuing a master's or doctoral degree. This is understandable because they believe they are increasing their employability. There is a downside to this action. First, it narrows the scope of employment available to those with a master's degree in a particular field. An employer will not engage a candidate with a higher education than themselves. And the larger problem is student loan debt. By continuing their education, the majority of these people are borrowing their lives from oblivion. They are informed that the more education they possess, the greater their employment prospects. This may have been true in the past, but it no longer applies.When college graduation is supposed to be a joyous occasion, these young adults are leaving college submerged in debt. Unfortunately, a bankruptcy filing will not even eliminate this type of debt. When filing for bankruptcy, the only way to discharge student loan debt is to demonstrate undue hardship. In order to establish an undue hardship, a person's bankruptcy attorney must file a motion with the court demonstrating why this person will face an undue hardship by repaying these loans. At the time of graduation, it is nearly impossible to prove this, because the bankruptcy judge cannot predict the individual's future employment. Typically, it takes a catastrophic accident or illness for a person to be permanently disabled and, as a result, unable to repay their debts.A further consequence of this predicament is that many of these young adults will move back in with their parents and reduce the household income. Some have even married and will move in with their extended families. When parents reach retirement age and are living on a fixed income, they can rapidly fall into debt and be forced into bankruptcy.When watching the news and seeing so many young adults graduate, one feels despondent. Their families are proud and exhilarated, unaware that the future and the economy of the United States are grim. The United States Congress should seriously consider reverting the bankruptcy regulations to what they were prior to 1998. Prior to 1998, a person filing for bankruptcy could include student loan debt in their discharge if they had made seven years of payments. I believe that for extreme circumstances, the federal government must undergo significant change.
" - https://www.affordablecebu.com/