Is Bankruptcy Law Too Tough on Student Loan Debtors?

by Brian Wolfman

Over the past several decades, federal law has become increasingly tough on student loan debtors. Statutes of limitations have been eliminated, and the bankruptcy law makes it very difficult to discharge student loan debt in both chapter 7 and chapter 13 cases. Under 11 U.S.C. 523(a)(8), a student loan debtor must show "undue hardship" to obtain a bankruptcy discharge, and the courts generally have interpreted that provision narrowly.

National Consumer Law Center student loan expert Deanne Loonin has just co-authored congressional testimony explaining why the  bankruptcy law ought to be more forgiving. Written in conjunction with a recent House Judiciary subcommittee hearing, Deanne's testimony discusses why treating student loan debt more like most other unsecured debt would be good for debtors, creditors, and taxpayers. Worth reading.

Comments

[Bankruptcy Services]

I've being researching about Bankruptcy Law and reading your blog, I found your post very helpful :) . I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog!

[Brian Wolfman]

Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPRs Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.

If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.

Brian Wolfman

reply-3P3ND8VUHUI4_4A78VM7PO7RE 11/26/09 07:24

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A new comment from Motivation Dissertations was received on the post Is Bankruptcy Law Too Tough on Student Loan Debtors? of the blog CL&P Blog. If you would like to post a reply to this comment you can do so at the following URL:

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Comment:

[Motivation Dissertations]

Took me time to read all the comments, but I enjoyed the article. Very helpful article! Makes total sense. It's always nice when you can not only be informed, but also entertained! I'm sure you had fun writing this article.

Dissertations On Motivation | Motivation Dissertation

[How to File Bankruptcy]

Personal 2 cents. With the current restrictions on bankruptcy filing, I have found myself in an enviable position. I earn more than the median for my state, and so cannot file Chapter 7. However, I do not earn enough to make the payments required under Chapter 13. The biggest single chunk out of my income is my mortgage, which cannot be impacted by BK as it is currently constituted, and I do not live in a state which exempts the primary residence from creditors; which doesn’t matter, as the value is now underwater. Here’s to hoping that they don’t literally bring back debt slavery, because figuratively I am a perfect candidate.

[bankruptcy laws]

We want to know where the best Lawyers and Attorneys are at. Why waste time? Check out the best Lawyers and Attorneys in your area here first and less time finding the right place for you!

[David]

I think the Bankruptcy Law is not tough. BTW thanks for posting the blog.

http://legallaw.sosblog.com/llblog-b1/Tips-on-avoiding-from-Bankruptcy-and-the-New-Bankruptcy-Laws-b1-p44.htm