DebtDoc Bankruptcy News Blog

Tuesday, 21 January 2020 11:54

Don’t Believe it’s Impossible to Discharge Student Loan Debt!

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A good bankruptcy attorney can help you maximize the protection of existing bankruptcy exemptions in California. A good bankruptcy attorney can help you maximize the protection of existing bankruptcy exemptions in California.

Recently in New York, Chief Bankruptcy Judge Cecelia Morris discharged more than $220,000 in student loans for a borrower. In her ruling she criticized the fact that many lawyers "believe it impossible to discharge student loans." She stated, "This Court will not participate in perpetuating these myths."

Yesterday Chris Arnold of NPR Morning Edition reported on the lingering misconception that it’s nearly impossible to get help for student loan debt through bankruptcy. He reported that Jason Iuliano, a Villanova University law professor, has been researching this problem and says that Congressional action over the last 30 years, including the “undue hardship” standard, is the source of a lot of misconception and ignorance on the part of bankruptcy attorneys and the public in general. Iuliano discovered that more than 99% of debtors in bankruptcy who carry student loan debt give up on seeking relief for those loans. That’s a big deal when you consider that a quarter-million student loan debtors file for bankruptcy each year.

Iuliano’s research revealed that when student loan debtors in bankruptcy do try to seek relief for their student loan debts, about half of them succeeded in getting some or all of the student loan debt erased. Iuliano said, "So I think that's really important for bankruptcy attorneys to see that there are judges out there who are willing to grant undue-hardship discharges and that people are much more likely to obtain relief in bankruptcy for their student loan debt."

Another law professor, Robert Lawless of the University of Illinois, commented "I think we're reaching a tipping point with what the bankruptcy courts are doing." He has been researching this issue with a group of attorneys and former judges for the American Bankruptcy Institute. This professional organization has been petitioning Congress to rewrite the rules on student loans in bankruptcy and there is at least some support for that in Congress.

Read more about this story and listen to the recorded newscast on NPRs website.

If you are in financial crisis with student loan debt and need advice, a knowledgeable bankruptcy attorney may be able to help. Call attorney Chris Bush, at (619) 678-1134, for more information. He is an experienced bankruptcy attorney and passionate consumer debt advocate. He’ll help you obtain the best solution to your debt burden and get back you on a track to financial freedom.

Read 323 times Last modified on Tuesday, 03 March 2020 21:49
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

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Clients with Student Loan Debt

Clients with Student Loans

Some information I need to evaluate your Student Loan options is contained in your National Student Loan Data System Report. Instructions for obtaining this report are available on my web site at sandiegostudentloanlawyer.com/nslds-report. Simply print/save the reports as a PDF, of all pages. Please DO NOT "DOWNLOAD" THE REPORT from the link - this creates a text file that is very difficult to read; please print the web page as a PDF file - the summary page of all loans AND the individual reports for each loan. Samples of these pages can be viewed by clicking the respective links in the previous sentence. I look forward to reviewing this report with you and assisting you with the management of your Student Loan debt.

I have prepared a brief questionnaire for you to fill out to provide me most of the information I will need. Please click this questionnaire link and provide me with the information listed. I would also like to see copies of your most recent pay stubs or other income information.

My office is located at 2727 Camino Del Rio South, Suite 135, San Diego, CA 92108. The main entrance to the building is on the right/west side. I am on the first floor; when you enter the building, turn right and I’m in the suite at the second door on the left. If the suite door is locked, please call or text at 619-678-1134 and I will let you in. (Unfortunately, I usually can’t hear a knock at that door.) I look forward to meeting with you and assisting you on your path back to financial freedom.