Tag: student loan

Wall Street Journal: Bankruptcy Lawyers Cheer White House Focus on Student Debt

Bankruptcy Lawyers Cheer White House Focus on Student Debt


President Barack Obama signs a Student Aid Bill of Rights in the Oval Office of the White House in Washington, D.C., March 10, 2015.European Pressphoto Agency

The White House is exploring whether to make it easier for Americans to get rid of student loans through bankruptcy, joining consumer advocate groups and federal lawmakers who’ve been pushing for that type of investigation for years.

“We’re glad they’re making this a priority and hope Congress does also,” said Ed Boltz, a North Carolina bankruptcy lawyer who is president of the National Association of Consumer Bankruptcy Attorneys.… Read More

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Bankr. W.D.N.C.: In re Magsino- Income Contingent Repayment Plan Precludes Student Loan Discharge

Summary:

After exhausting her 36 months of student loan deferments for unemployment, the Debtor sought to discharge her student loans in bankruptcy. The Department of Education offered her an Income Contingent Repayment plan (“ICRP”), with monthly payments set, at least initially, in the amount of $0.00 a month.

Even though the Debtor had a very low standard of living, the bankruptcy court held that under ICRP she would have payments of $0.00 a month, her student loans would not cause a minimal standard of living. Further, despite being 61 years old, the court held that “age alone is not an “additional circumstance” determining the second prong.… Read More

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