especially young students, do not possess significant assets to serve as collateral. Unlike a mortgage, where the house being purchased acts as collateral, or an auto loan, where the car itself serves as security, student loans are usually granted before the borrower has built up substantial asse...
Eventually, these waiting periods were done away with, but borrowers with federal or private student debt needed to prove their loans posed an "undue hardship" to discharge it. Borrowers also must make their case in a separate "adversary proceeding" outside of the standard bankruptcy process,...
ARTICLE: FIXING FOR-PROFIT FAILURES: WHY STUDENT LOANS FOR FOR-PROFIT SCHOOLS SHOULD BE DISCHARGEABLE IN BANKRUPTCYAustin Alexander
Not all student loans are created equal, and careful consideration should be given to interest rates, repayment terms, and future financial goals. In the following sections, we will explore the specific advantages of student loans, the potential impact on financial well-being, and the ...
According to anew reportby the progressive think tank Demos, “student debt is particularly damaging for individuals who struggle to repay their loans. Delinquent borrowers are saddled with fees, penalties and rapidly accumulating interest; borrowers who default on their loans face ruined credit and a...
Of course, there are many other reasons people file for bankruptcy. For example, some may have burdensome student loan debts. Although student loan debt is difficult to discharge in bankruptcy, it's not impossible. A new policy introduced in 2022 has made discharging federal student loans easier...
are being created to serve clients in matters where it was never cost-effective to use lawyers before, I don’t think that most lawyers would be troubled. However, isn’t the better solution to simplify the systems like small claims court that are supposed to serve clients rather than ...
Bankruptcy, while often a blessing for debtors, is not intended to solve every financial issue someone may face. Certain things are typically not dischargeable, such as: child support and alimony certain tax debts student loans government fines and penalties ...
Now, Republicans have not only changed the bankruptcy laws so that you are no longer “cleared“ after seven years like it was when I was coming up, but you can’t even discharge student loans in bankruptcy. This was arguably one of the largest gifts the GOP ever gave the banking ...