Congress Considering Changes to Allow Student Loan Debt to be more easily Discharged in Bankruptcy

Posted on September 21, 2009. Filed under: Uncategorized |

Currently, student loan debt can not be discharged in bankruptcy without showing that the payback of the student loan would be an “undue hardship” on the debtor.  The courts have interpreted this very strictly to mean that a person almost has to be homeless or living out of your car to qualify under the courts standard. (not quite that bad, but close !)

Here is the link to the Committee’s website: http://judiciary.house.gov/hearings/hear_090923_1.html

Because of the economic collapse the country is suffering, and the extremely large student loan debt that folks are facing, Congress has been requested to re-visit this part of the bankruptcy law.  The Committee on the Judiciary’s Subcommittee on Commercial and Administrative Law is holding this hearing at the direction of the Chairman. 

Stay tuned….

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

Follow

Get every new post delivered to your Inbox.

Join 712 other followers

%d bloggers like this: