We have all heard a parent say that the dream for a son or a daughter is that he or she will one day become a doctor or lawyer. But as the economy changes, so might their views. According to recent data, although the national Chapter 13 bankruptcy rate is experiencing a decline, the number of law grads finding themselves in need of bankruptcy protection is dramatically increasing.

Student loan debt is one of those classes of debt that is not dischargeable in bankruptcy, but it is precisely what is driving most recent grads into seeking protection. In the years between 2001 and 2010, the average law school debt rose 50 percent.

It is not just the student loan debt that is driving these recent grads into financial trouble. It is the large amount of debt combined with the job market that is continuing to decline. Not only are law schools graduating students at an incredibly high rate but law firms are not hiring. In fact, the top 250 law firms laid off approximately 5,900 of attorneys that new grads are now up against in the job market.

So why are students continuing to enter seek the higher education even though a Juris Doctorate's average earning power is outweighed by student debt? Law schools all across the country continue to include statistics in their job-placement data that says for example, 90 percent of their recent grads are employed. Although technically that may be true, schools are failing to say how they determine that statistic. Does a job as a waitress count?

The American Bar Association is currently restricting job-placement data rules to require more transparency in reporting the data, but that does nothing for students who have already incurred the debt. The best solution for many is to seek the assistance of a more experienced attorney.

Source: Reuters, "Law grads go to court for bankruptcy protection," Leigh Jones and Moira Herbst, Feb. 3, 2012