Until 2005, students could freely file bankruptcy and discharge private student loans. Additionally, prior to 1998 student loans could go into bankruptcy 7 years after they became due. However, since 2005, the bankruptcy options on student loans are cut down to discharging the debts only if they meet the qualifications for a hardship discharge. There…
In an old ABI podcast, two law professors debated student loan bankruptcy reform and lawmaking to make student loans easily dischargeable in bankruptcy and possibly propose methods on how to do it. One law professor suggests student loans might be valued by using what an unsecured lender pays for this debt, based on the ability…
In regard to student loan hardship repayment plans, there was once a requirement that people first attempt an Income Contingent Loan Repayment Plans (ICRP). However, that was overruled in Kentucky. I refer you to Circuit Barrett v Educational Credit Management Corp 487 F 3rd 353 2007 where a medically disabled person was asked by ECMC…
Some student loans automatically discharge if you list them correctly and file them properly. Not waiting for the proper length of time to discharge them is probably malpractice. In addition, not waiting for the proper length of time to discharge income taxes can also be fatal. This is the quick four-part checklist we use to…
Yes, it is hard to bankrupt student loans. In fact, we think that some judges go beyond the standard. Also, federal bankruptcy courts sometimes grant bankruptcy student loan discharges based on section 523(a)(8)’s “undue hardship” standard. However, while some courts allow attorneys and doctors to discharge a student loan, others are harsh. Student Loan Bankruptcy…
In an ABI podcast (see link below), two law professors discuss the Student Loan Bankruptcy Reform Law. The topic is on student loans should be made more easily dischargeable in bankruptcy. They discussed possible methods of how to do it. One law Professor proposed student loans could be valued using what an unsecured lender pays…