Both the IRS and Government guaranteed student loans can perform paycheck garnishments without going to court. But bankruptcy can stop the paycheck garnishments even if they are priority debts or they are not dischargeable. In fact, the IRS and Department of Education can issue the orders even in states that don’t allow garnishments. However, Chapter…
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…
Interestingly, the average debt among college students in 2020 is up to $30,062. This is nearly $6,000 more than students graduating in 2009. Bankruptcy hardship discharges are hard to get but not impossible for student loans. In fact, private student loans are more often dischargeable than income-contingent and federal student loans. The 2010 student loan…
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…