As the last year or so has wreaked havoc on the finances of many New York residents – and, indeed, many people across the country – the subject of student loans has been front and center in the national news. Millions of people have benefited from an automatic forbearance that has been in place for months now, which means many people have had no need to pay their monthly student loan payments. However, the end of that order is in sight. What will happen when millions of people must once again pay hundreds of dollars per month in student loan payments?
This subject has not only been in the national news, but it has also been the topic of discussion in Congress. And, according to a recent report, a new bill was recently introduced that could help people who are struggling with their student loan payments and their overall financial situation.
The proposed bill, known as the “Fresh Start Through Bankruptcy Act,” would reportedly make it much easier for student loans to be included in the type of debt that can be discharged through a bankruptcy filing. Even more hopeful for those who may monitor the progress of this bill through Congress is that it was introduced on a bipartisan basis. Time will tell if it actually becomes law.
Is bankruptcy right for you?
Student loans are oftentimes just one part of the debt puzzle that many people are trying to solve. When your debt burden becomes overwhelming, it may be time to ask yourself one question: Is bankruptcy right for you?