With holiday shopping in full swing, many are more self-aware of their spending and current debts. Credit card debt can create many burdens, but this is not the only type of debt that can weigh a person down for a long duration. More significant debt, such as a mortgage, auto loan, medical bills, and student loans can stick with a person for decades. While bankruptcy can help reduce and eliminate certain debts, this process cannot erase all financial woes.

Those living with debt often file for bankruptcy to seek relief from it. However, this process does not work for those who are primarily bogged down by student loan debt. Current data suggests that roughly one-third of bankruptcy filers carry student loan debt, which is a debt that is virtually impossible to discharge. Additionally, of the 32% of bankruptcy filers that carry student loan debt, it was found that student loans make up roughly half of their total debt.

This is concerning, as the purpose of the bankruptcy process is to help individuals who are living with financial hardships regain control over their finances. It is difficult to recover after the bankruptcy process when large monthly payments towards student loans are still draining their bank accounts.

Because this is such a cumbersome situation, there may be recourse in sight for those seeking relief from student debt. Proposed legislation could help eliminate the burden of proving undue hardship when seeking to erase student debt. If it passes, borrowers would need to prove that they cannot meet a certain standard of living if he or she continues with their student loan repayment plan.

Filing for bankruptcy is not an easy step to take. It can be an overwhelming decision. However, when one is overwhelmed with debt, it is important to consider the available debt relief options. And for those seeking to eliminate very specific debts, it may be valuable to speak with a legal professional, as they can provide guidance about your options.