01.14.2016 | by Chris Frye
The United States Supreme Court recently denied hearing an appeal of a Wisconsin man who was trying to eliminate more than $260,000.00 in student loans in a Chapter 7 bankruptcy proceeding. With student loan debt at an all-time high, and defaults on paying those student loans at an all-time high, the issue of eliminating student loans in bankruptcy is ripe for a Supreme Court decision. Especially because the standard being used by most courts to determine whether a student loan can be discharged is decades old and is extremely stringent.
01.07.2015 | by Kenny Steinberg
I recently met with a mom and her daughter. Nice people: smart, active, engaged. And very much in debt.
The daughter (let’s call her Mary) has graduated from college, has worked, but is currently on unemployment compensation. Mary’s mom is working. Neither is bringing in much money.
Here is the problem: Mary has student loan debt. A lot. And she isn't close to having the money to pay for it.No problem, you say. You've read our blog articles and seen our videos about student loan debt and you know that Chapter 13 is available to people like Mary to slice the paymentsdown to something she can afford for up to five years. And in fact, we are about to do so: her payments in the Chapter 13 will be $150 per month. That’s right, $150 per month on the$125,000 of student loan debt that the creditors wanted over $800 per month from Mary. And $800 per month would have been about 80% of her income. Mary was relieved, to say the least.