Filed under: Advice,Finance

As the economy continues to remain stagnant, more and more people are filing for personal bankruptcy. Even worse is that many of these people have college degrees and skills.

It’s not unusual that in hard economic times, a large portion of the people who file for bankruptcy have attended college. In fact, often, whenever a person considers filing for personal bankruptcy, and student loans make up a good part of their debt, there is a good chance the loans will not be discharged.

In 1998, when the government’s rules regarding bankruptcy were changed, student loans were ruled to be non-dischargeable as many financial institutions were losing million of dollars. Additionally, the government was losing millions of dollars on loans that were guaranteed by the federal government when the loans were discharged through bankruptcy.