Latest Posts
Home > Debt Articles > Student Loan Related > Student Loan Bankruptcy Discharge

Student Loan Bankruptcy Discharge

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

Screen Shot 2015-10-02 at 10.57.02 AM

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


    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

      Clapping Business People

      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

          woman on computer

          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.


            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.”

              Screen Shot 2015-07-22 at 1.55.52 PM

              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 »

                  Department of Education Reaches Decision About Student Loans and Bankruptcy


                  The Department of Education has just released guidance on how it will handle bankruptcy discharge requests for government backed student loan debt. And while the guidance is helpful, it’s also a bit disingenuous that it places the burden on students who believed what schools and colleges sold them as a smart financial move. The guidance wants to provide a balance ... Read More »

                    Can You Discharge Private Student Loans in Bankruptcy?


                    There’s a big misconception that private student loans can never be discharged in bankruptcy. People have repeated that statement so often they believe it to be a fact. The only problem is it’s not quite true. Some private student loans are clearly eligible to be wiped away in a consumer bankruptcy. Even in a Chapter 7 bankruptcy, it takes only ... Read More »

                      Will You Finally Be Able to Get Rid of Your Student Loans in Bankruptcy?

                      help woman

                      This week the White House announced a new Student Aid Bill of Rights, which aims to help federal student loan debtors with better options and more clarity in dealing with their problem student loans. While most of the new initiatives announced are geared toward eliminating unnecessary payment hurdles and make dealing with federal student loan repayment options easier, one section ... Read More »

                        $40K in Navient Student Loans Waived in This Bankruptcy


                        Here is another in my ongoing look at student loans eliminated in bankruptcy. 14-50101 Broshears The debtor who filed bankruptcy in this case was a State employee who was making about $30,000 a year. The debtor had both federal and private student loans. The private student loan balance was $55,920 that required a payment of about $459 a month. Navient ... Read More »

                          Stafford and William D. Ford Loans Discharged in Bankruptcy

                          Woman in safari hat looking through binoculars

                          As part of my ongoing look at student loans and bankruptcy, today I’m reviewing a case where both a Federal Stafford Loan and a Federal William D. Ford Direct Loan were completely discharged in a chapter 7 bankruptcy. 14-40052 Branneky According to court documents, the Plaintiff filed a voluntary petition for relief under Chapter 7 of the U. S. Bankruptcy ... Read More »

                            Can I Really Discharge My Student Loan Cosigner Liability in Bankruptcy?

                            Mature woman confused

                            “Dear Steve, I am currently filing for Chapter 7 bankruptcy in TX. A large amount of my debt comes from being a co-signer on multiple private student loans for my son. He graduated Dec 2008 with a finance degree as the economy was headed down. He was not able to get a job for more than 1 year. He worked ... Read More »

                              A Look at a Cosigners Navient Student Loans Discharged in Bankruptcy

                              Student Loans Concept

                              As part of what has become an ongoing look at student loans discharged in bankruptcy the example today is where a cosigner discharged their liability for federal student loans with Navient Solutions. This case is yet another example of how the financial hardship of having to repay unmanageable student loans can lead to a discharge of the student loan debt. ... Read More »

                                Get My FREE Get Out of Debt Guy Newsletter

                                Latest Info, Best Advice, Cutting Edge Tips

                                I promise to keep your email safe and secure.