Good News For People Wanting to Discharge Federal Student Loans in Bankruptcy

I would bet this case will be appealed because it sets a troubling precedent that allows for the elimination of federal student loans in bankruptcy. Richard Fossey wrote about this case yesterday. The background is that Kevin Rosenberg graduated with student loan debt that was never going to get repaid. But here is a deeper … Read more

Bankruptcy Groups Jump In to Support Student Loan Discharge to Avoid Cement Life Preservers

The National Consumer Bankruptcy Rights Center (NCBRC) and National Association of Consumer Bankruptcy Attorneys (NACBA) have decided to support the bankruptcy discharge in ECMC v. Murray with an outside briefing supporting the effort. The Murray case is very interesting in that the bankruptcy court agreed a substantial part of their student loan debt should be … Read more

Do You Think I Could Eliminate My Federal Student Loans With the Brunner Test? – Leslie

Question: Dear Steve, I am going to provide a timeline of events and circumstances leading up to my current situation. I apologize if it’s too long but I think the circumstances are important to my case for loan discharge and I desperately need advice: 2009-2012: Attended the Illinois Institute of Art – Chicago (a branch … Read more

Using This Information Man Discharges $130K in Federal Student Loans in Bankruptcy

Interest rate negotiation can result in a lower interest rate than you are paying now.

I’ve been going on-and-on about a July 7th, 2015 statement put out by the U.S. Department of Education that talked about how the government has made allowances to approve the discharge of federal student loan debt through bankruptcy, in some situations; namely, under the “Undue Hardship” clause of the Federal Bankruptcy Code, under the exception … Read more

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

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 … Read more