Alabama's Morning News with JT
Stan Springerley tells us who is being impacted most by the economy
It is Ryan C. Chris here. People always say it's good to unwind, but that's easier said than done. The exception, Champa Casino. They actually make it easier done than said, or at least the same. Champa Casino is an online social casino with hundreds of casino-style games like Slots and Blackjack. Play for fun, play for free, for your chance to redeem some serious prizes. Sign up now and collect your free welcome bonus at ChampaCasino.com. Sponsored by Champa Casino. No purchase necessary. VGW Group. Void were prohibited by law. 18-plus terms and conditions apply. Alright, look out on millennials. Move over Boomers. Apparently, now Generation Z, those Gen Zers, young people, 12 to 27 years of age, are really struggling financially with the inflation and the economy in such bad shape right now. Joining us now to talk a little bit more about this, Stan Springerly, who's a bankruptcy attorney with Lincoln Goldfinch Law in Austin. Hey, welcome in Stan. Thanks for being here. Thank you for having me. So, you know, bankruptcy is a bit different nowadays relative to 2008 when everything crashed there. Let's talk about bankruptcy, first of all, and people that go through it now and how it's not as bad to file bankruptcy. Yeah, it's going to be under credit for a while, but a lot of people do this to kind of regroup and, you know, start over. And I've been told once you do file bankruptcy and you've got a bunch of debt, you know, the worm turns almost immediately as far as, you know, your credit's going to be hit, but then it starts climbing up and you're going to start getting all kinds of, you know, requests to sign up for this credit card or take out this loan will help you out of it and you can actually start to improve things a lot quicker than you used to be able to, right? Things have changed. So, bankruptcy is a lot like having surgery and, you know, it's not at the top of anybody's list. No one really wants to go and have a medical procedure done. Same thing for a legal proceeding. With the use of technology, things are kind of streamline now and you still have to come in with good faith and be honest in order to get the protection that the court has to offer, but it is a safety net and it does help people, especially unfortunately for Gen Z, you could almost say they have bad timing for those that are adult 18 to 27 in that group. They're coming in at a time when everything per cost of living is higher, from health care to housing to student loans and even car insurance. You know, when you talk about the student loans, which you cannot bankrupt, it can certainly be a part of a bankruptcy, but it's not going away and the interest continues to compound almost hourly, which is just criminal the way they do that. But with that said, and kids coming out of college, obviously a lot of them bring that debt with them and it's bigger than ever. And then they're faced with rents, what, three grand? I can't buy a house because the interest rates are so high. I mean, wow, I mean, it's a triple quadruple whammy for these folks. So as a financial advisor, and I guess, as a bankruptcy attorney, you wear that hat as well, Stan, what's your thoughts of a mom or dad called and said, look, you're a young person that's out there on their own nowadays, come in and go, I don't know what to do here. All of a sudden, I'm strapped and I can't find a way out. I'm drowning. What should they do? We're seeing extraordinarily high balances on student loans in the six figures for many folks who try to get higher education. And, you know, presumptively, student loans are non-dischargeable in bankruptcy. They get that preference of not being able to be wiped out in a bankruptcy. However, there are some legal options in conjunction with a bankruptcy, depending on the type of loan, how old it is, you can file what's called an adversary proceeding in bankruptcy court to try to get a hardship discharge is what it's called. And if the balances are high enough, it is worth looking into your legal options because there may be some relief there. If anything, you can at least address unsecured creditors like credit cards, medical bills, personal loans that don't have collateral and hopefully make your monthly budget a little bit more breathable. You know, let's talk about young people that do graduate and, you know, I know coming out, they'd like to have six figures because they've got that college degree, but the reality is, you know, that's not necessarily going to be the case. And even with a lot of people that stay in, you know, their parents' home beyond graduation, just because it is so darn expensive and they're trying to help the kids not get into a bad situation of debt and just helping them survive the financial economic situation that this country is in right now. Even that said, if you have free rent and your parents are helping you with utilities and by living there and you don't take on necessities and costs of everyday life, that student loan debt can be pretty massive for somebody that's 22, 23 out of college, you know, what are your thoughts there that they can't find work in those debt? I mean, what do you tell somebody that's got that student loan debt and nothing else really bothering them financially, but even that is too burdensome for them. Well, it's harder to lay a foundation, especially for the younger generation. Every generation's dealt with the rising cost, but here recently we've had these rapid increases in cost of living and it's sort of a domino effect and if you can't afford housing because you're spending so much money on things like student loans or whatever it is, and then you face, you throw on top of corruption, let's say you have a medical situation and whatever it may be, life happens and that's why it's important to consider your legal options in federal bankruptcy court. Corporations have been taking advantage of the important options that they have to restructure and the shed debt and it's all about assumption of risk, the creditors factor in risk of loss and interest rates, so they're not really losing money. They might get taxed right off as well as another financial benefit to them, but the average person, the citizen who is struggling to make into me, they need to have more options. If the policy makers are failing to provide sufficient jobs that provide adequate benefits in the economy, you've got to look at your safety net. It's part of the economy. You mentioned the policy makers, we have Congress to thank for these compounded interests that they put on these student loans. If you're in a situation like that, get ahold of your Congress people and let's get some changes made. Otherwise, it's not going to change much in the short term for sure. I really appreciate your insight this morning. Thanks again, Stan, for being with us and we'll have you back. Hey, it is Ryan Seacrest. There's something so thrilling about playing Chumba Casino. Maybe it's the simple reminder that with a little luck, anything is possible. Chumba Casino.com has hundreds of social casino style games to choose from with new game releases each week. Play for free anytime, anywhere, for your chance to redeem some serious prizes. Join me in the fun. Sign up now at Chumba Casino.com, sponsored by Chumba Casino. No purchase necessary. VGW Group. Void where prohibited by law. 18 plus terms and conditions apply.