It is sad, but it is not surprising. People in their early twenties, many of them university students, are among the fastest growing group of bankruptcy filers in Michigan and in the United States. 2009 surveys indicate that 10 % of all teenagers have a credit card of their own and this can be detrimental for many younger spenders. The average college student graduates with about $4000 in credit card debt.  Many young graduates owe even more.  What is worse, is that many of these  students have never had a full-time job.  Many of them just work in the summer or part-time.  

If you are a college student and are contemplating filing bankruptcy, please give us a call or fill out our confidential bankruptcy form.

Marketing credit cards to college students has increased in recent years and many experts argue that colleges should not allow credit card companies on campus to market to students.  Many college students are learning to manage money for the first time in their lives and credit cards can escalate a mis-management problem in these young adults. The stores and credit card companies reap the benefits of our misguided ways. 

Credit card debt can make it more difficult to obtain graduate school loans.  

Although, bankruptcy may be an option for you, it is important to note that your student loans may not be discharged with a bankruptcy. In 1998, there was a change to the bankruptcy law under Chapter 7 and Chapter 13 that made it much more difficult to have your student loan discharged. This means that even if you declare bankruptcy, you may still have to pay back those student loans.

It is always best to talk to an experience bankruptcy attorney to ensure that you are making the right long-term bankruptcy decisions.