It's one of the myths many people believe about bankruptcy. They think their financial slate is wiped completely clean after filing for bankruptcy. Unfortunately, that's not true.
There is no question that for many individuals, filing for bankruptcy is the best course of action they can take. Though the process may be stressful, for most, being able to discharge the debt that is undoubtedly dragging them down, makes it well worth it. While most types of debt are dischargeable, there are some that debtors remain responsible for. For example, taxes and back child support must be paid. This is generally the case where student loan debt is concerned as well. There are some exceptions however.
Many Minnesotans have personally felt the squeeze from student loans. For many, there is graduation and the sudden realization that tens of thousands of dollars is owed for that education. Prior to taking out these loans, many did not worry, believing they would just find a great-paying job right out of college. However, after graduation -- for many -- the realization of the current economy and how much entry level positions actually pay starts to set in.
It is officially springtime in Minnesota. That time of year when parents are busy touring colleges with their teenage sons and daughters, trying to figure out what the most realistic school is for their children. For many, while of course getting accepted plays a role, so does the cost of the college.
The Federal Reserve recently released numbers for December, which showed an increase in student loan and auto loan borrowing. This increase coincided with a decrease in credit card debt, which points to the fact that many Americans are continuing to financially struggle and not making as many purchases as they once did when the economy was stronger.