Being in debt can absolutely take its toll. Having thousands of dollars in student loans can easily be a burden on someone who is trying to become debt free. Michigan residents may be happy to know that if bankruptcy is on their mind because of student loans there may be hope for loan forgiveness thanks to a program with chapter 7 bankruptcies.
Student loans can possibly be forgiven from the debtor's responsibility through a chapter 7 bankruptcy if a determination is made indicating that making the payments will cause the debtor and undue financial hardship. Recent reports indicated that 47 percent of Americans have actually managed to get out of their student loan debts by either paying them off or using government forgiveness programs. Over half of the American adult population is currently still paying on student loan debts every month. Just over 20 percent of the people still paying are over the age of 55.
There are, however, qualifications to meet to receive the loan forgiveness. Keep in mind though, not everyone that is qualified for the forgiveness may be approved. Only bankruptcy experts can determine whether or not the debtor qualifies for the possible approval of the loan forgiveness.
Understandably, making the decision to file bankruptcy can be a difficult one. Filing for a chapter 7 bankruptcy in Michigan can sometimes be confusing to people who don't have experience in the field. Obtaining the help of a bankruptcy expert can ultimately make the situation less stressful and easier to get through, so becoming debt free can be more of a reality than wishful thinking.
Source: MainStreet.com, Student Loan Forgiveness Hope: These Jobs Help Those Drowning in Debt, No author, Oct. 21, 2013