… bankruptcy.
intercst
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Did they change something? I thought student loans, by law, could not be included for purposes of declaring bakruptcy.
Private loans can be discharged, but it takes some extra work, like proof of hardship.
That’s how bankruptcy court works. You have to prove that you’re unable to pay your bills while maintaining an acceptable lifestyle.
Private Equity operators typically don’t lose their private jets when plunging a company into bankruptcy to screw workers out of their jobs, pensions, and health insurance.
intercst
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Well, they are “JCs”. so are handled with deference. We don’t toss them in prison anymore.
iirc, for a student to have a loan discharged, they need to prove that, not only can they not pay the loan off now, but their income is so low, and their prospects so dim, they would never be able to pay the loan off.
Steve
Yes.
More people with federal student loans have been able to walk away from their debt in bankruptcy court due to a Biden administration policy change announced last November.
In the fall of 2022, the U.S. Department of Education and the U.S. Department of Justice released updated bankruptcy guidelines to make it easier for struggling borrowers to get their student loans erased in court.
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