College students in Alabama face many financial challenges upon graduation, challenges that are often compounded by crushing student loan debt. Under current law, student loans usually cannot be discharged through bankruptcy. However, a bill recently introduced in the United States Senate aim to have that changed.
The economic downturn these last few years has forced Americans to re-evaluate their spending. The struggling economy has led to the creation of tight budgets and a decrease in luxuries such as shopping and eating out. It has also lead many to consider more large-scale solutions, such as bankruptcy as a way to eliminate debt.
It is often very difficult for many of Alabama's families to steer clear of mounting debt. Unfortunately, with the passage of time, credit card debt can multiply to the point where it may appear to be insurmountable.
Readers of our Birmingham bankruptcy blog may be interested to know there are many reasons behind a personal bankruptcy filing. The loss of a job, prolonged unemployment and business failure are all reasons why individuals choose to file Chapter 7 bankruptcy. A medical condition resulting in unmanageable medical bills is also a leading reason for personal bankruptcy filings.