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College grads are increasingly likely to file for bankruptcy Atlanta, GA

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College grads are increasingly likely to file for bankruptcy

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Despite the financial and employment benefits that typically come with a college degree, recent statistics report that college graduates now make up approximately 55 percent of bankruptcy filers in the United States. Therefore, this means that those who complete more years of schooling are now at a higher risk for bankruptcy, despite having average salaries that are over 100 percent higher than individuals who do not earn college degrees.

Graduates also tend to have lower unemployment rates than those who do not receive a college degree, which should theoretically make them more resilient against debt. However, in the current economy, student loans, credit card debt, and a poor job market are collectively forcing college graduates into bankruptcy.

College students in 2009 had an average credit card debt of approximately $4,000. It has become increasingly common for students to use credit cards to pay for living expenses during school. Lacking financial education, many are unaware that with part-time employment and minimal savings, they will be unable to pay off their credit card debt, and that this debt will quickly accumulate under aggressive interest rates.

Even college students who are able to manage their credit card debt through and after school will likely be saddled with student loan payments after graduation. In 2009, college graduates had an average of $18,000 in student loan debt, which is an increase of 8 percent from a year earlier and a staggering 47 percent from a decade ago.

After graduation, paying off these debts can be difficult, as the economy and job market are making it difficult for new workers to secure jobs with a decent salary. Because of this, many are forced to turn to bankruptcy. However, it is important to note that student loans cannot be discharged through bankruptcy, although a Chapter 13 filing may allow the debts to be placed on a payment plan for more manageable payments.

Source: Bankruptcy Home, “A Correlation Between College Grads and Bankruptcy,” 13 May 2011

Posted on behalf of Gingold & Gingold

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Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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