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KNOXVILLE, TN, April 30, 2015 /24-7PressRelease/ -- In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act made student loans obtained from private lenders essentially non-dischargeable in bankruptcy. Because of this, bankruptcy filings caused by a huge student loan (compounded by interest and penalties for late or non-payment) are on the rise. The Knoxville bankruptcy experts at Clark & Washington note that this problem affects not only the person who took out the loan but also their co-guarantors for the loan and society at large.
Many students take out student loans with a co-guarantor. It could be their parents or even grandparents. When they cannot make timely and regular payments for whatever reason, the lender can go after the assets or income of the co-guarantors. The percentage of student loan debt held by people over the age of 50 has tripled since 2005. This is a population that should be looking toward retirement. Instead, they are trapped in a vicious and crushing cycle of student loan debt.
Even the people who did not take out student loans are not spared from the consequences of this looming student debt crisis. Not only are the debtors unable to pay their student loans, they are also unable to fully participate in and contribute to the larger economy as a whole. The buying of goods and houses slow down and economic growth is stunted.
When life takes a hard turn and you are unable to make your debt payments, get in touch with the Knoxville bankruptcy experts at Clark & Washington right away. Nobody understands bankruptcy in Knoxville better than their seasoned lawyers. To learn more, go to http://www.knoxvillebankruptcyattorney.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 7 and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.knoxvillebankruptcyattorney.com.
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