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Massachusetts' student debts causes financial challenges

When a Massachusetts resident is struggling with student loan payments, it can mean that their credit card payments will suffer as well. Being in debt is difficult, but, fortunately, there are options for individuals and families. Looking at different legal recourses for reorganizing, a person's assets can offer significant debt relief. One option to consider for Massachusetts residents is debt reorganization bankruptcy. It offers a simple way to pay off your debt with the income that a person is receiving.

Income inequality can put massive amounts of student debt on top of individuals. This can lead to other debt problems, including credit card and getting behind on mortgage payments. The widening gap between the wealthy and the debt-laden is growing. According to a new report, there is $1 trillion in student debt for Americans. That is more than credit card and auto loan debt. Student debt is increasing and can put a burden on those struggling with other forms of debt as well.

While bankruptcy cannot get rid of student debt, filing for Chapter 13 bankruptcy can help one reorganize other forms of debt. This can offer people living in Massachusetts a way to use their income to pay off debt. It can potentially absolve some more onerous payments. Of course, Chapter 13 has eligibility and specific rules, so it's important to be familiar with how the process works.

Being in debt can be a challenge for a person or a family. Even if someone is getting out of school and are behind on credit card payments, there are options. Reorganizing a person's financial life starts with finding a fresh start to financial problems. A mechanism for helping someone laden with debt is reorganizing his or her financial life through Chapter 13.

Source: ABC News, "$1 Trillion Student Loan Debt Widens US Wealth Gap," Carolyn Thompson, March 27, 2014

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