We have been focused on student debt recently, and with good reason. It's an important bankruptcy topic, let alone an important social topic. Today we will be continuing that discussion, albeit through a very bizarre and unexpected lens.
It's an unfortunate aspect of life: there are people out there who prey on people who are in difficult life situations. Often these scam attempts revolve around money, and usually the targets are people who are significantly in debt. Mortgages, credit card debt, auto loans -- all of these things have caused many people to believe that a voice on the other end of the phone actually represents a legitimate business that is trying to help them get out of debt.
After filing for bankruptcy six times in a four-year span, a woman has been sentenced to federal prison for just over a year after she pleaded guilty to providing false statements in her bankruptcy attempts. Apparently all of her bankruptcy attempts were Chapter 13 filings, and all were dismissed as a result of missing information or documentation.
One of the prevailing reasons that many people are in debt is student debt. The loans that people took out in college to pay for myriad things -- including skyrocketing tuition, absurdly expensive books, and numerous other school supplies -- end up biting them later on in life.
As we have written about, and as many people know, filing for bankruptcy is a major decision in a person's life. It will help you clear out many debts that are leading you towards financial despair. However, bankruptcy is also very hard on the person who files. It will take some time to rebuild your credit and to get back to the way things were.
Many people immediately assume that someone who carries a lot of credit card debt is an irresponsible person, or that they simply don't understand "the concept of money." To be fair, these stereotypes could be true of some people. But there are many people out there who are carrying credit card debt because they had to make an unexpected or extreme purchase for their livelihood, or for the betterment of a loved one.