White House Takes Action on Student Loans; Executive Order Does Not Affect
Nondischargeability of Student Loans in Bankruptcy
Entered
nondischargeability judgments against bankruptcy debtors after having previously represented the creditor in a Superior Court trial to judgment against the same debtors for theft of trade secrets.
White House Takes Action on Student Loans; Executive Order Does Not
Affect Nondischargeability of Student Loans in Bankruptcy, Los Angeles Bankruptcy Lawyer Blawg, October 14, 2014
Clarifies current law's «undue hardship» exception to
nondischargeability in bankruptcy as it applies to federal student loans by creating a rebuttable presumption that a debtor faces an «undue hardship» if the debtor is receiving disability benefits under the Social Security Act;
If you decide to file bankruptcy, your recent purchases may be scrutinized for fraudulent behavior and
possible nondischargeability actions.
Represented business entities and individuals in bankruptcy court litigation, including preference, fraudulent transfer and
nondischargeability proceedings.
Successfully
brought nondischargeability claims based on embezzlement and fraud against a business owner in bankruptcy, allowing the remaining business owners to obtain debtor's shares in the company.
If private student loan debtors were behaving opportunistically pre-policy, we would have expected a sharp relative decline in bankruptcy filings after the 2005 provision impeded their alleged opportunistic behavior, as compared to debtors whose incentives were not directly affected by
the nondischargeability provision.
«
The nondischargeability of student debt and the urban legend of the student deadbeat.»
Student loan debt, both public and private, is also included on the list of nondischargeable debts, 11 U.S.C. § 523 (a)(8), although the rationale for
its nondischargeability may not be as clear.
The nondischargeability judgment allowed the client to enforce the judgment against the debtors that would have otherwise been discharged in the bankruptcy cases.
While Saad may have violated his fiduciary and contractual obligations under Michigan law, said the court, Abdel - Hak's arguments did not support
the nondischargeability requirement for the federal bankruptcy code.