Sometimes a catastrophic event, a job loss, a sudden illness, will trigger a slide in your finances that will quickly lead down the slippery slope to a bankruptcy filing. Perhaps your employer in Louisville shuts down, leaving you out of work or you are in a car accident that leaves you injured, unable to work and with mounting medical bills.
The U.S. economy has endured its share of financial crisis in the last few couple of decades. First, there was the savings and loan crisis of the late 80s, then came the internet bubble, followed most recently by the mortgage crises and recession of the last few years. What's next? Apparently, student loans are the next potential problem.
No one wants to file bankruptcy. While the social stigma has diminished over the years, filing bankruptcy is not like winning the lottery. In fact, for many, it is the sad recognition that they have lost the lottery. And today, there are many residents of Kentucky and across the nation who have lost the lottery.
While bankruptcy has many causes, in recent years, student loans have garnered attention for their uneasy relationship with bankruptcy. Many clients here in Louisville recognize that they generally cannot discharge student loans in bankruptcy. What many of them do not recognize is that there may be circumstances where the loans may be subject to discharge.
A bankruptcy can be triggered by many events in life, such as medical bills caused by a serious illness or injury, by a divorce, which splits ups household resources and may generate expensive court costs and legal fees, or by a job loss.