It perhaps wouldn't come as too much of a surprise to learn that bankruptcy reform has not exactly emerged as a hot-button issue on Capitol Hill over the last few months. Indeed, both Congress and the Trump Administration have been more than occupied by debates concerning everything from immigration and health care to the longstanding Supreme Court vacancy.
As we've discussed on our blog, those people looking to eliminate their private student loan debt in bankruptcy face a very real challenge. That's because the U.S. Bankruptcy Code dictates that no discharge can be granted for a loan made for an "educational benefit" absent a showing of undue hardship.
Thanks to the skyrocketing costs of both college and graduate school, the monthly ritual of submitting a student loan payment has become increasingly exasperating for some, fiscally painful for others and a near impossibility for far too many.
In our last post, we began discussing how people of all ages here in the U.S. are having difficulties with student loan debt. Indeed, statistics from the Consumer Financial Protection Bureau reveal that as many as one out of every four borrowers are either having trouble making their monthly payments or are in default.
Every month people of all ages across the country either log onto the Internet or get out their checkbooks to make yet another sizable student loan payment. While this exercise is merely groan inducing for some, it is actually painful for others, particularly those who are struggling to make ends meet.
When you file of bankruptcy, the court will appoint a bankruptcy trustee. The bankruptcy trustee administers the case from reviewing all of you financial paperwork to liquidating property. The trustee is obligated to try to satisfy as many creditor claims as possible either in part or in whole.
If you're like high numbers of other student loan debtors in Florida and elsewhere across the country, you're managing to timely pay off your student loan, even if it stands as a notable obstacle with a payment duration spanning a decade or more.
When you sit down with a bankruptcy attorney to discuss spiraling debt and the urgent need you have for meaningful debt relief, you obviously have a lot of weighty concerns on your mind and likely feel more than just a bit stressed and vulnerable.
In terms of bankruptcy reform, there were a few major additions and overhauls to the federal law that rules and regulates the bankruptcy process. One of those major overhauls was legislation that was passed only half a decade ago. The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed to prevent alleged abuse of the bankruptcy process.