If you are a college student, you may find yourself in facing financial struggle. The truth is that many college students do file for bankruptcy today. After all, many college students are only managing their own money for the first time. The same applies to new college graduates.
Are you considering bankruptcy as a student or recent graduate? Read this guide to learn more about college students and bankruptcy options.
Chapter 13 bankruptcy, which is also known as a wage earner bankruptcy plan, allows individuals with a steady income to pay back a part of their debt. The amount the debtor pays back is based upon their income, monthly bills, and other factors. Whatever is left over is considered disposable income, which the debtor can keep.
Unfortunately, circumstances change, and if a wage earner loses their job or if their income decreases dramatically during Chapter 13 bankruptcy, they might not understand what to do next.