Sentences with phrase «discharging educational debt»

On September 23, the U.S. House of Representatives Judiciary Committee, Subcommittee on Commerical and Administrative Law held a hearing on discharging educational debt in bankruptcy.

If debtors take these comments to heart and believe that their chances of success are trivial, they will be less likely to attempt to discharge their educational debt.

Not exact matches

Changing the bankruptcy laws to allow for discharge of student loan debts would do far more to solve the problem of predatory educational lending than any initiative Richard Cordray can conceive.

Rep. Allen Ertel, the former PA congressman responsible for the amendment adding educational debts to the discharge prohibitions of section 523 had this to say:

The legislative history of the 1978 Bankruptcy Reform Act, the law that added a student loan provision to the Bankruptcy Code, is full of comments by members of Congress concerned with the damaging effects of continuing to allow educational debt to be discharged.

(8) for an educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents;

The Plaintiff asserts that her debt for educational loans incurred prior to the 24th of October, 2011 should be discharged because repayment would constitute an undue hardship within the meaning of 11 U.S.C. § 523 (a)(8).»

But with the Biden - backed bankruptcy restrictions preventing courts from discharging most educational debt, more and more students have complained to federal regulators that private banks are unwilling to renegotiate the terms of high - interest loans.

Four categories of student debt - a federal loan, a loan that's part or fully from a nonprofit institution like a school, a private loan used for qualified education purposes (namely, the cost of attendance to an eligible institution), or a loan for an «educational benefit» — can not be discharged without proof of «undue hardship.»

Student loans can't be discharged in bankruptcy like other debts can, so someone who defaults on educational debt is still going to have to spend money on their loans rather than on buying things that would grow the economy.

Section 523 (a)(8)(B) provides that an educational loan is not dischargeable unless «excepting such debt from discharge... will impose an undue hardship on the debtor and the debtor's dependents.»

Years of legal maneuvering by debt collections companies has made it impossible to discharge student loan debt in bankruptcy, making educational debt more dangerous than credit card debt, mortgage debt, and most other forms of borrowing.

(8) Debts for most educational benefits and student loans, unless a court finds that not discharging the debt would impose an undue hardship on the debtor and his or her dependents.