Casey Anthony declares bankruptcy

In last week’s post, we discussed the burden of student loan debt that many people in New Jersey and nationwide struggle with day after day. Recent reports suggest that the average student has to borrow about $27,000 to pursue an advanced degree in college. The problem is widespread, and it has added up to more than $1 trillion that is owed in student loans. We also discussed the options that people may have when it comes to dealing with this debt and the potential to reorganize it.

However, one option that is generally not available to people who are looking to discharge student loan debt is Chapter 7 bankruptcy. While filing for Chapter 7 bankruptcy can help most people discharge various types of unsecured debt, it will not end a person’s responsibility to pay student loans, child support and other similar sources of debt. This can be very frustrating for folks to understand, especially considering the fact that Casey Anthony was recently able to discharge her large amounts of debt by declaring bankruptcy.

Casey Anthony was a tabloid fixture who was accused and found not guilty of killing her 2-year-old daughter, Caylee. After racking up more than $500,000 in legal fees and spending hundreds of thousands of dollars paying for private investigators and forensic experts, Anthony found herself nearly $800,000 in debt. Not surprisingly, Anthony has been unable to secure employment since her trial. She has also been named in various civil lawsuits. In order for her to wipe her financial slate clean, she has filed for bankruptcy protection.

The same cannot be said for people who are in debt thanks to student loans, child support payments or taxes. Filing for Chapter 7 bankruptcy can discharge credit card debt, stop a foreclosure and end the harassment by creditors and can be an effective solution for many people looking to get a financial fresh start. For others, however, alternative options to filing for bankruptcy are also available. No one should have to deal with mounting debt levels alone.

Source: Forbes, “Casey Anthony Can Declare Bankruptcy And Expect Relief But Student Loan Debtors Receive No Such Protection,” Helaine Olen, Jan. 27, 2013

Related Posts: Suze Orman: Why bankruptcy can be better than the alternative, Can you file for bankruptcy…again?, Actress files for Chapter 7 bankruptcy, Tech entrepreneur files for Chapter 7 bankruptcy

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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