There are many college alumni living in Arkansas who are under their student loan debt. Many of these individuals have debt from loans that are over six figures in total, making it seemingly impossible to pay off the debt. Thankfully, many lawmakers are considering a bill that will help you out of your student loan debt and will ensure that you are living more comfortably in the long run.
Consumer Bankruptcy Reform Act of 2020
The act that lawmakers are considering to help with your student loan debt is the Consumer Bankruptcy Reform Act of 2020. This law will be in effect under the bankruptcy code of the United States, and it would give student loan borrowers the ability to erase student debt under Chapter 10 bankruptcy.
There are many considerations to take into account before filing for personal bankruptcy. It is important to note that this should only be a last resort. You can set up better payment plans under this deal, but there are other things to consider. Bankruptcy results in:
- A major drop in your credit score
- A bankruptcy on your credit report for up to seven years
- Difficulties in loan approval
Bankruptcy is a difficult subject for many, but the new provisions made by Congress can help you out of your student loan debt. Before you make this decision, though, speak with a bankruptcy lawyer. He or she may help you to understand if this decision is truly the best for you. With an attorney’s assistance, you can better understand the considerations mentioned above and determine if the consequences outweigh the student loan debt.