It’s no secret that student loan debt is a sleeping giant that seems to be stirring from its slumber. And while you might assume that you won’t have the healing powers of a bankruptcy discharge in your arsenal when facing this monster. You see, general wisdom holds that student loans cannot be discharged in either Chapter 7 or Chapter 13 bankruptcy. That’s both right and wrong.

We can’t tell you what happens when you die, but we can tell you what will happen to your debt. Whether you owe money on credit cards, mortgages, student loans or other types of debt, the rule of thumb is that your heirs will not be held liable. In other words, individuals cannot “pass on” or “inherit” debt when a loved one passes away.

The bankruptcy means test is an income-based method used to determine whether debtors qualify to have their debts wiped out under Chapter 7 of the bankruptcy code or restructured through Chapter 13. It is designed to limit eligibility for Chapter 7 liquidation to debtors who genuinely struggle to pay their debts or have insolvent businesses.

Everyone wants to know how to get out of debt.  And considering that consumers have collectively racked up more than $182 billion in credit card debt since the beginning of 2011, it’s no wonder why.  But while scratching and clawing one’s way to debt freedom is indeed a difficult and commendable act, staying out of debt in the long-term should be your true objective.

Chapter 7 is the most common form of personal bankruptcy, constituting about 70% of all non-business bankruptcy cases. It is also called “straight” or “liquidation” bankruptcy, requiring debtors to surrender most of their property in exchange for forgiveness, or “discharge,” of their debts. That property is liquidated, or sold for cash, and the proceeds are used to compensate the debtors’ creditors.

Chapter 13 bankruptcy, also called “reorganization” or “wage earner’s” bankruptcy, requires debtors to restructure their debts and create a three- to five-year repayment plan. Under this bankruptcy option, debtors must use their future income to pay off creditors partially or in full. The arrangement allows debtors to extend the payment period on certain types of debt and retain all of their assets. It is the second most common form of personal bankruptcy after Chapter 7, or “liquidation” bankruptcy, which is a much swifter process compared with the multi-year timeframe of Chapter 13.

America is a land of freedom and opportunity.  At least that’s what we celebrate each July 4^th as we watch fireworks sparkle over waving stars and stripes.  But there are many different types of freedom and numerous instances throughout history in which our actions have belied our ideals.  One thing in particular from which we are not free at the present time is debt.  Millions of Americans owe trillions of dollars to various types of lenders, and even Uncle Sam is deep in the hole.

There is plenty of blame to go around for this beholden state of affairs, from corporate shenanigans and questionable political leadership to a lack of financial literacy and the gradual transformation of old-school luxuries into new-school necessities.More important than how we got here, however, is what we’re going to do about it now.

Bankruptcy isn't cheap. In fact, it's expensive. Between filing costs, attorney's fees and mandatory counseling, the tab associated with today's average bankruptcy case is more than $1,500. Such high costs have in recent years made filing completely unaffordable for about 200,000 to as many as one million Americans, according to the National Bureau of Economic Research. But there are ways to minimize the cost of bankruptcy.

Brenda Procter has been fighting the good fight against payday lenders for 20 years, and boy does she have some stories to tell.

Unfortunately for consumers, the debt collection industry is thriving.  Not only does it boast $13 billion in annual revenue, but the industry is expected to grow by 15% from 2012 to 2022 – far faster than the average occupation.  That shouldn’t really come as any surprise, though, considering how debt-obsessed we’ve proven to be in recent years.