Abstract: A drawback of student loans is that a debtor must show “undue hardship” to discharge them in bankruptcy. An advantage of student loans is that most of them may be repaid using income-driven repayment (“IDR”) plans, under which the debtor can satisfy the obligation by paying a share of income over a specified time, even if the payments do not reduce the loan balance to zero. This Article addresses how the availability of IDR should affect the analysis of undue hardship in student-loan bankruptcy.
By Ed Boltz, 26 November, 2017
Abstract: Bankruptcy reform in 2005 restricted debtors’ ability to discharge private student loan debt. The reform was motivated by the perceived incentive of some borrowers to file bankruptcy under Chapter 7 even if they had, or expected to have, sufficient income to service their debt. Using a national sample of credit bureau files, we examine whether private student loan borrowers distinctly adjusted their Chapter 7 bankruptcy filing behavior in response to the reform.
By Ed Boltz, 17 November, 2017
Summary: The Prices, who are above median income debtors, but nonetheless have negative projected disposable monthly and no non-exempt assets, proposed an estimated 15% dividend to the class of dischargeable general unsecured creditors, which totaled $11,728.38. They also proposed to separately classify the $10,463.48 claim by Navient for non-dischargeable student loans. The Chapter 13 Trustee supported confirmation, but the Bankruptcy Administrator filed a limited objection to such treatment. The bankruptcy court first addressed whether the prohibition in §1322(b)(1) aga
By Ed Boltz, 10 November, 2017
Law Review: Taylor, Aaron & Sheffner, Daniel - Oh, What a Relief It (Sometimes) Is: An Analysis of Chapter 7 Bankruptcy Petitions to Discharge Student Loans Abstract: Conventional wisdom dictates that it is all-but-impossible to discharge student loans in bankruptcy. This contention, however, misstates the fact that bankruptcy discharge of student loans is possible—and it happens.
By Ed Boltz, 12 March, 2015
Bankruptcy Lawyers Cheer White House Focus on Student Debt
- By KATY STECH
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 AgencyThe White House is exploring whether to make it easier for Americans to get rid of
By Ed Boltz, 10 September, 2014
By Ed Boltz, 26 August, 2014
By Ed Boltz, 6 May, 2014
Summary: Hensel had student loans of more that $90,000. In November 2012, he received two bills for late fees in the total amount of $68.28. In response, on December 9, 2012, Hensel sent XBS a check for $68.28 attached to a letter that asserted the late fees violated the FDCPA, that assessment of the late fees had harmed his ability to purchase a home, and proposing to release his claims if XBS cancelled his remaining student loans, with cashing of the $68.28 to constitute acceptance.
By Ed Boltz, 16 May, 2012
Summary: The individual Chapter 11 plan proposed to pay approximately a 4% dividend to general unsecured claims, but separately classified his $235,871.00 in student loans, proposing to pay that class in full. No impaired class accepted the plan. Accordingly, the plan could only be approved by fulfilling the requirements of 11 U.S.C.
By Ed Boltz, 13 February, 2012
Summary: The Debtor proposed a plan that would have paid roughly a 3.8% dividend to general unsecured claims, but would have separately classified his non-dischargeable student loans and paid them in full. The general unsecured class did not accept this plan. 11 U.S.C.