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Do women plus student loan debt equal Chapter 7 bankruptcy?

On Behalf of | Nov 6, 2019 | Chapter 7 Bankruptcy |

A portion of the approximately 44.7 million people who owe student loans may live right here in Brownsville. Surely, some of them are women. In fact, recent research indicates the odds are high that many of those owing student loans are women. The next question some may ask is whether this could mean that a disproportionate amount of women will file Chapter 7 bankruptcy in order to make more room in their budgets to pay their student loans.

The research suggests that around two-thirds of the nearly $1.59 trillion in student-loan debt is owed by women. Not only do more women have student loans than men do, but they also tend to owe more than men do as well. Women also tend to earn degrees more often than men do.

However, with the still-existing pay gap between them,  women make less money than men do, so they may have a more difficult time repaying their student loans. Research shows that women make approximately 81% of what men in the same professions and positions do as of 2018, and this represents a vast improvement since 1979. The answer to paying off student loan debt is not as simple as women asking for higher pay or raises.

For this reason, it is possible that many women could choose to file Chapter 7 bankruptcy in order to relieve at least some of their debt obligations. Student loans are generally not discharged during the proceedings, but eliminating other eligible debts could provide much-needed funds to put toward this type of debt. In order to determine whether this would be a viable debt relief option for a particular Brownsville woman, it would probably be worth a consultation with a knowledgeable bankruptcy attorney.