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Filing for bankruptcy after college

On Behalf of | Dec 5, 2022 | Bankruptcy

Many people are seeking student debt relief. While there’s no easy way to relieve a graduate of their student debt, many people build up other forms of debt during their education. This frequently happens because creditors often seek out college students who often desperately need money to pay for food, rent, books and school resources.

For many students, a credit card is an easy way to pay for all their college needs, but it’s also a fast way to suffer under a ton of debt. When dealing with overwhelming credit card debt, students may need to know their options. One such way to deal with the responsibility to pay off credit card debt is to file for bankruptcy.

Here’s what you may need to know:

Your bankruptcy options for credit card debt

One of the most commonly used forms of debt relief is a liquidation bankruptcy, also called Chapter 7 bankruptcy. Liquidation bankruptcy helps people pay off some or all of their debt by liquidating assets. Assets are either considered exempt or nonexempt during the liquidation process.

Alternatively, you may consider filing for Chapter 13 bankruptcy if you’re able to pay off some of your debt with disposable income but not all of it. Chapter 13 bankruptcy is a refinance plan that redistributes debt payment.

Bankruptcy can’t easily clear away your student loan debt, but it can ease the burden of other forms of debt – putting you on a fast track to pay off your student loan. You may need to know your legal options when looking to pay off your credit card debt.