Dept of Ed Position in Student Loan Bankruptcy Case is Nukin Futs

Tamara Parvizi, age 51, sought to discharge $653,743 in student-loan debt in a Massachusetts bankruptcy court. That’s a lot of debt–just shy of two-thirds of a million dollars. For 15 years, Parvizi took out student loans to pursue several degrees, and she became fluent in at least four languages. Nevertheless, Parvizi never made a single … Read more

Bankruptcy Judge – “This Student Loan Case Fits the Definition of Insanity”

In Goodvin v. Educational Credit Management Corporation, Judge Dale Somers, a Kansas bankruptcy judge, began his opinion with these words: “This student loan case fits the definition of insanity.” Judge Somers went on to chronicle the story of Jeffrey Goodvin. Mr. Goodvin attended Wichita State University for four years (1982-1986) but did not obtain a … Read more

Bankruptcy Judges Eliminates Federal Student Loans Without IDR First

Seth Koeut was born in Cambodia and came to the United States as a child. Like many immigrants, he applied himself energetically to obtain a better life. He graduated 6th in his high school class and went on to earn two bachelor’s degrees from Duke University. Mr. Koeut then went to medical school and received … Read more

A Bankruptcy Court Eliminates Grandmother’s Student Loans

Between 2006 and 2015, Jamie Mudd took out 41 student loans to attend Heald College, a for-profit institution, and San Joaquin Delta College, a public institution. In 2015, she rolled these loans into two consolidated federal loans, totally about $72,000. Mudd put her student loans into an income-based repayment plan (IBRP) that established her monthly … Read more

Judge Grants Partial Discharge of Private Student Loan Debt

Mendenhall v. Navient Corporation: A $76,000 student-loan debt grows fivefold In 2007, Steven Mendenhall obtained a bachelor’s degree in film and video production from Brooks Institute of Photography, a for-profit college in California, which later closed. To finance his studies, Mendenhall took out about $75,000 in federal student loans and $76,000 in private loans from … Read more

ECMC – Your Student Loans are a Life Sentence

The U.S. Department of Education and Educational Credit Management Corporation (ECMC), DOE’s ruthless sidekick, don’t want anyone to get bankruptcy relief. This has been DOE’s policy for many years. Let’s take a look at Mosley v. Educational Credit Management Corporation, decided by the Eleventh Circuit back in 2007. As we will see, Mosley was clearly … Read more

Williams v. U.S. Department of Education: How does someone run up $400,000 in student-loan debt?

In Greene v. U.S. Department of Education, Judge Richard Posner, a universally esteemed jurist, remarked that the criteria for determining “undue hardship” in student-loan bankruptcy cases are complex. Nevertheless, Judge Posner observed, “[t]he size of the debt is relevant–the larger it is, the more likely that imposing full liability on the debtor will produce an … Read more

Here is Why Forgiving Student Loans is Impossible Issue With an Easy Solution

When it comes to a rapidly accelerating financial burden on American families, there is no greater concern than student loans. The debt is burdensome and unfair on many levels that I’ll explore below. However, there is a straightforward and simple solution for dealing with all of this outside of struggling to develop a fair forgiveness … Read more

Hlady v. Educational Credit Management Corporation: Another Heartless Bankruptcy Judge Denies Relief to a Distressed Student-Loan Debtor

Books

Cherie Ann Hlady graduated from Hofstra Law School in 2006. She passed the New York bar exam and began practicing law. Unfortunately, Hlady could not make ends meet as a practicing lawyer. Ten years after getting her law degree, she filed for bankruptcy. Hlady took out student loans totaling $40,000 to finance her legal education, … Read more

The Best List of Private Student Loans to Bankrupt

Mark Kantrowitz from Private Student Loans Guru recently wrote an article for Forbes – How To Bankrupt Your Student Loans. The article is great but it contains the best list of private student loans that are not qualified education loans and should be able to be discharged in bankruptcy as I describe in this post. … Read more

Private Student Loans Under the Bankruptcy Microscope for This

An avenue of inquiry that is being pursued in an ongoing bankruptcy adversary proceeding might help to bring some clarity to what is the actual cost of attending a school where student loans are utilized. The court arguments are getting into the weeds, and that’s okay. Every nook and cranny is being evaluated to reach … Read more

National Collegiate Student Loan Trust Bankruptcy Arguments Getting Sharp

A group of attorneys are fighting the good fight in a case involving another stinking National Collegiate Student Loan Trust case. The arguments about why these particular private student loans should be discharged in bankruptcy have been sharpened through several cases and litigation. When I read the summary, in this case, it seemed that the … Read more

Bankruptcy Judge Discharges All NCSLT Student Loans

Here is a very interesting bankruptcy case from earlier in 2020. Judge Jennemann had no patience for National Collegiate Student Loan Trust and eliminated the private student loans in full. She also awarded attorney fees to the consumer as well. This case shows, if a creditor claims your private student loans are exempt from discharge … Read more

Bankruptcy Judge Says REPAYE is a Hopeless Strategy

A recent opinion written by United States Chief Bankruptcy Judge Somers is a fascinating read. The bankruptcy judge excoriates the student loan position the government has held that student loans should not be discharged in bankruptcy. Of course, even that position goes against previous Department of Education advice that some federal student loans should be … Read more

Shocking Landmark Ruling on Private Student Loan Bankruptcy Discharge

Happy Couple Tablet

Let’s hope that August 31, 2020, can be remembered as an important day in the fight to break student loan debtors free from the lifelong debt slavery of student loans. The appeal court opinion in a case involving the discharge of Navient private student loans was McDaniel v. Navient. This case involved Navient Tuition Answer … Read more