In Survey, Bankruptcy Lawyers Warn of Student Debt Risks

A majority of more than 800 bankruptcy lawyers in a survey say they have seen an increase in clients with student loans over the past few years and that most of those debtors are unlikely to be able to discharge their loans due to "undue hardship." The survey, published by the National Association of Consumer Bankruptcy Attorneys, found that 62 percent of the lawyers have seen bankruptcy cases involving student loans increase at least 25 percent since 2008. A paper published with the survey warns of a "Student Loan ‘Debt Bomb,' " and calls for restoring the ability to discharge student loans in bankruptcy.