Atlanta Bankruptcy Attorneys Clark & Washington Discuss Student Loan Relief and Bankruptcy

    ATLANTA, GA, February 09, 2015 /24-7PressRelease/ -- The Atlanta bankruptcy attorneys at Clark & Washington would like to inform current and former college students of the effects of filing bankruptcy on your student loans. Many people are confident that filing for bankruptcy can help provide relief from seemingly insurmountable student loan debt. This is just not true unless you can prove some form of undue hardship, which is difficult to do.

Filing for bankruptcy can discharge a large heap of debts from credit card debt to mortgage debt, however, there are some forms of debt that are simply non-dischargeable during a bankruptcy. These includes debts such as child support, alimony, tax debt and, unfortunately, student loans. There are no current financial relief havens for student loans quite yet, but the increasing crisis impacting more than 40 million Americans will certainly lead to some reform in the future. Although bankruptcy cannot discharge student loan debt, it may help to straighten out other financial problems you may have, which may free up some assets so you can keep up with your student loan payments.

Fortunately, there are alternatives to filing bankruptcy that may help. If you are not at a place where you necessarily need to have your debts discharged, President Obama issued an executive action that can cap student loan repayments at 10 percent of a borrower's monthly income and then be forgiven after 20 years under the Pay As You Earn program. The law will not go into full effect until 2015, which is right around the corner.

In order to qualify for the program, you have to have a form of financial hardship, which means that the monthly amount you are required to pay under a standard 10-year repayment plan is higher than the amount that would be required under the Pay As You Earn program. An experienced Atlanta bankruptcy lawyer can help explain all of your options to you.

For more information or to schedule a free consultation with an Atlanta bankruptcy attorney, visit http://www.cw13.com

About Clark & Washington:

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.cw13.com.

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