Ashley Deady, "Bankruptcy's Blind Spot: An Examination of How the System Turns its Back on Mentally Ill Debtors," argues that while the Bankruptcy Code promises a fresh start for the "honest but unfortunate debtor," it frequently fails those whose financial distress is intertwined with mental illness.
The bankruptcy court denied summary judgment to both the debtor and MOHELA/Navient in a closely watched dispute over whether a private student loan qualifies as a "qualified education loan" under § 523(a)(8)(B). The court held that genuine issues of material fact remain regarding whether the loan exceeded the debtor's actual cost of attendance, an issue that could determine whether the debt was ever excepted from discharge in the first place.
