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Student Loan Bankruptcy Discharge

Do I Have a Good Case for Eliminating My Private Student Loan Debt?

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Question: Dear Steve, I am interested in pursuing bankruptcy for my private student loans. While this is usually a futile battle, documentation from the research I have done will make my claim valid. I have $41000 in debt to ACS, and I have $111000 in debt to Navient (Sallie Mae). Only about $30,000 of that money ($152,000) was actually used ... Read More »

    Before You Enrolled in College Did They Tell You Your Degree Sucks?

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    In my ongoing thread over the concern colleges and universities have been enrolling students and not giving them the window sticker of what was really to be expected (see this, this, and this) comes this interesting information out today. While some students were induced to enroll in college and go deep into debt, there is growing concern that the messages ... Read More »

      Door Prepares to Slam for Student Loan Forgiveness Due to Fraud

      And this picture is in honor of your husband.

      Back in October of 2014 I wrote a story titled Millions of Federal Student Loans Lining Up to Be Eliminated and Borrowers Repaid. At the time I wrote that article some people said I was crazy. After all, how could people actually have their federal student loans forgiven because they were defrauded. Well the simple answer is because it is ... Read More »

        Another Consumer Wins in Bankruptcy Court and Discharges Student Loans

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        An attorney reader sent me a case about another consumer who successfully had their federal student loans discharged in bankruptcy. This is a rapidly evolving topic and certainly not ever court district offer up the same considerations when it comes to a discharge. But there are still a number of people who say discharging your student loans in bankruptcy is ... Read More »

          Bankruptcy Court Tells Dept of Ed to Go Shove IBR as Unrealalistic

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          On Jun 24, 2015, Michael Abney became a student loan hero when he filed his own adversary proceeding with the United States Bankruptcy Court of the Western District of Missouri. When I say he became a hero it’s because his case is just another step forward in providing some semblance of hope and logic for people impossibly buried under a ... Read More »

            Private Student Loan Lenders Silently Slash Debt But You Don’t Know It

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            Dealing with student loans can be a frightening process. Not only is student loan debt exploding but there is a significant amount of concern that many students were misled and lied to by schools willing to sell butts into seats with nearly almost any misrepresentation. This concern has been especially true at many for-profit schools funded by both federal and ... Read More »

              Will Mark Tetzlaff Be Our Student Loan Hero?

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              Mark Tetzlaff is a law school student who might not have achieved his dream of being a licensed attorney but the guy surely deserves some props for championing the cause through the courts of being impossibly in debt with student loans and seeking a legal remedy. My last story on Tetzlaff, here, talked about how his request failed to have ... Read More »

                Millions of Federal Student Loans Lining Up to Be Eliminated and Borrowers Repaid

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                As a consumer debt expert for decades I’ve developed a pretty good sense of reading the tea leaves of debt. Sometimes this means making some sense out of puzzle pieces well in advance of assembly. I’m getting that same strong sense that student loan debtors are on the verge of a bold new ability to discharge massive amounts of federal ... Read More »

                  Department of Education Tips Hand on Student Loan Defense

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                  The Department of Education is scheduled to publish a request that seems to tip their hand about a borrower defense that could allow lots of students from having to repay their student loans. Clever attorneys will find a way to confirm if schools have violated state laws, as the government has claimed some have. If proven the school had violate ... Read More »

                    Brunner Test Needs to Die Say These Heroes in Student Loan Bankruptcy Discharge

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                    On July 29, 2015 the National Consumer Law Center (NCLC) and National Association of Bankruptcy Attorneys (NACBA) jointly filed a court document arguing a position in support of discharging student loans through the bankruptcy laws. Much thanks to the readers and tipster who slipped me the document. The matter of dealing with overwhelming student loan debt through bankruptcy has been ... Read More »

                      Law School Debtor Loses Bankruptcy Decision to Discharge His Debt, But Lessons Learned

                      Student Loans Concept

                      The United States Court of Appeals for the Seventh District just ruled that a student loan debtor could not discharge his loans in his consumer bankruptcy case. Lately I’ve been writing about bankruptcy cases where consumers have been able to discharge substantial amounts of student loan debt. You can see the articles here. Before I go on I owe a ... Read More »

                        Another Consumer Nukes Their Student Loans Through Bankruptcy

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                        A reader contacted me to share his story of dealing with his unmanageable student loans through bankruptcy. Just recently I’ve written two articles that showed how people have fought the battle against their student loan companies and the bankruptcy court agreed to eliminate their debt. Read this and this. The cases of consumers making there case with the bankruptcy court ... Read More »

                          Teacher Discharges Loads of Student Loans in Bankruptcy. ECMC Fights Back.

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                          Today I’m looking at another bankruptcy discharge case, see more here, where a bankruptcy judge felt it was appropriate to allow for a legal discharge of student loan debt. In this case the consumer represented herself in the action and has fought a valiant battle. Even though President Obama and the Department of Education have recognized a valid and reasonable ... Read More »

                            Bankruptcy Court Wants to Discharge Spousal Consolidation Student Loans. Educational Credit Management Corporation Says, “Not So Fast.”

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                            I have to admit I am totally perplexed by the media and popular myths that believe student loans can’t be discharged in bankruptcy. Even a lot of bankruptcy attorneys believe this wildfire myth. Thanks to some amazing readers and tipsters I’ve just received a collection of cases where the consumer managed to have their student loans eliminated in bankruptcy, right ... Read More »

                              Mother Wins Bankruptcy Discharge of National Collegiate Student Loan Trust Student Loans

                              The decision to file bankruptcy should be a celebration.

                              A Los Angeles bankruptcy judge ordered student loans to be discharged on July 6, 2015 because they did not qualify as education loans under 11 U.S.C. 523(a)(8). Judge Neiter, United States Bankruptcy Judge in the Los Angeles Division of the Central District of California, presided over the adversary proceeding case no. 2:14-ap-01722-RN, Schwartz v. National Collegiate Student Loan Trust and ... Read More »

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