Chapter 7 May Help Young Parents Who Are Struggling With Debt

Chapter 7 May Help Young Parents Who Are Struggling With Debt

Being young and a recent college graduate with young children to provide for can be an extremely challenging time of life. Too many Illinois residents know the strain of trying to pay off student loans, pay for childcare and meet their other financial obligations. Many times, there seems to be too little money at the end of the month. Chapter 7 bankruptcy may help individuals in this position.

An article was recently published that talked about the number of people who are struggling to cover their debts and care for their families. About a quarter of Americans are carrying student loans. The average amount owed is around $37,000, which comes out to a repayment plan of about $400 per month for the life of the loan repayment period. That is not a small chunk of change for most people. 

In order to pay off this debt, many young parents are turning to childcare providers to take care of their children while they work. The average amount a family pays in childcare expenses is said to be $250 per week. These costs only seem to increase every year. 

What people pay for childcare and student loan debt on a monthly basis is the same, if not more, than what they pay for housing. Among those three things, there is little left to cover all of the other necessities. Chapter 7 bankruptcy is for individuals in Illinois who lack disposable income and, therefore, are unable to meet their creditor demands. Student loans typically cannot be discharged in a bankruptcy filing, but other debts can be, which would free up funds for one to pay down student debt and ease the financial burden of paying for childcare. Those who would like to learn if a Chapter 7 filing would be of benefit to them can turn to legal counsel for more information on this topic and, if appropriate, obtain assistance with filing.

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