Category Archives: Student Loans in Bankruptcy

Making Voluntary Payments to Student Loans During Chapter 7 Bankruptcy

From time to time, I receive a form letter from a student loan servicing company concerning one of my Chapter 7 bankruptcy clients that goes something like this: “We have received notice that your client has filed for Chapter 7 bankruptcy protection. In response, we have applied a forbearance to the student loan listed below. […]

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Keeping Student Loan Interest Rates Low Is Good, But What We Really Need Is to Reform the Law to Allow Discharge of Student Loans in Bankruptcy

In my last post, I noted the fact that Americans are now saddled with over $1 Trillion in student loan debt, more than all of us combined owe to credit cards. And as I also wrote, Congress has made it next to impossible to discharge student loans in bankruptcy. To be discharged in bankruptcy, the […]

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The Bankruptcy Code’s (and the Courts’) Treatment of Student Loans Is the Gift to Lenders That Keeps on Giving

In 1976, Congress amended the Bankruptcy Code to make government backed student loans nondischargeable in bankruptcy unless the debtor could prove that being forced to repay her student loans would impose an “undue hardship.” This exceptional treatment of student loan debt ran counter to the general principle of bankruptcy law to favor a fresh start […]

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