Recently I met with some clients who discussed their debt and asset situation with me. I reviewed everything, thoughtfully considered their options, and gave them my recommendations. Then, as they were about to leave, they laid a bombshell on me. “We owe about $150,000 in student loans, but we know bankruptcy can’t do anything about that.”
Raising kids is tough. Having two of my own, believe me, I know. As a parent, any major (or even minor) decision that you make can have an impact on your children. A bankruptcy can generally affect an individual in two ways; financially and/or emotionally. Consequently, in general, those are the same two ways a parent’s bankruptcy can affect their child. Let’s deal with the financial impacts on your kids first.