Education Bankruptcy Finance & Banking

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The Trend Reverses: College Tuition Payments Shielded from Avoidance in Bankruptcy - Bankruptcy Court Rules in Favor of University...

It is the start of a new semester, and all across the country, parents are writing tuition checks to the colleges and universities that their children attend. Colleges accept the checks on behalf of the students, the tuitions...more

Caught in the Cross-Fire: Student Loan Lenders and Servicers’ Risks in the Bankruptcy Fight over College Tuition Clawbacks

Many parents hope to fund, in some part, their children’s college educations, and the federal government has created a system of incentives, including tax advantaged 529 plans, to support that expectation. Recent research...more

Bankruptcy Court Finds Student Loan Debt Dischargeable

Student loan debt in the United States continues to mushroom, and according to the Federal Reserve, is approaching the $1 trillion mark. As bankruptcy practitioners and many in the public well know, the Bankruptcy Code...more

Court Grants Student Loan Debt Relief to a Graduate of a Non-Accredited Medical School

On April 4, 2016, the U.S. Bankruptcy Court for the Eastern District of New York issued a decision that may significantly change the landscape of student debt relief. In re Decena, No. 15-72903, 2016 WL 1371031 (Bankr....more

Arizona Leads Nation in Defaulting on Student Loans

Congratulations Arizona, you are the best. You’re the best at being the worst!! I have admit that I borrowed that phrase from an ex-drill sergeant who was reprehending me for something I had done that was incorrect and it has...more

Reversing the Trend: Will Congress Act to Except College Tuition Payments from Clawback in Bankruptcy? - Congress Weighs...

A trend emerging in consumer bankruptcy cases around the U.S. is causing concern for many parents, students and undergraduate schools. As was reported by The Wall Street Journal in an article published on May 5, 2015, an...more

Bankruptcy Beat: An Emerging Trend: Bankruptcy Trustees Seeking to Claw Back Tuition Payments Made by Unsuspecting Parents

A developing trend in our nation’s bankruptcy courts has been the number of lawsuits filed or threatened by bankruptcy trustees to recover tuition payments made by a student’s parents when the parents later file for...more

When A Parent Files For Bankruptcy Colleges May Forfeit Tuition Payments

While it is hard to imagine that a college or university could be forced to refund tuition paid years ago that enabled Student to receive a college education, this scenario is now playing out with increasing frequency. Many...more

Bankruptcy Trustees Target Colleges and Universities

Over the past few years, higher education institutions have seen an increase in litigation from an unexpected source: bankruptcy trustees. Trustees appointed in personal bankruptcy cases are seeking to claw back tuition...more

Why colleges in bankruptcy should have access to federal financial aid

With the reauthorization of the Higher Education Act (HEA) in full swing, the time is ripe for Congress to reconsider current laws prohibiting postsecondary institutions that declare bankruptcy from participating in the...more

Restructuring in Higher Education

Since 2011, there have been an increasing number of restructurings in higher education. What may have started with the foreclosure and sale of ATI Schools and Colleges has continued this year with last month’s conversion of...more

Student Loans: Nondischargeability Questioned in Seventh Circuit and Beyond

Conventional wisdom says that it is nearly impossible to obtain a discharge of student loan debt in bankruptcy. Indeed, Section 523(a)(8) expressly excepts student loans from discharge, unless the exception of such...more

Bill on Bankruptcy: Easterbrook Turns the Tide on Student Loans  [Video]

April 18 (Bloomberg) -- Why and when U.S.-managed hedge funds can go bankrupt in the Caribbean, not in the U.S., is the first item discussed on the new bankruptcy video with Bloomberg Law's Lee Pacchia and Bloomberg...more

New Legislation Introduced to Allow Discharge of Private Student Debt

The Consumer Financial Protection Bureau (the “CFPB”) reported in 2012 that U.S. borrowers are burdened by more than $1 trillion in student debt, including over $150 billion of private student loans. According to TransUnion,...more

Bill on Bankruptcy: Delaware to Continue Dominating Bankruptcy  [Video]

Feb. 6 (Bloomberg) -- The dominance of Delaware and New York bankruptcy courts is secure for another two years, for reasons Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle explain on their...more

Second Circuit to Student Loan Collectors: Know Your Bankruptcy Law!

A recent decision by the Second Circuit underscores the importance to debt collectors of accurately describing the options available to a student loan borrower in bankruptcy, even a borrower who previously filed but did not...more

Reduce Student Loan Debt in Niagra Falls, New York

If you want to relocate, consider Niagra Falls and reduce your student loan debt....more

Consumer Financial Protection Bureau Shaking Up Private Student Loan Industry

The Consumer Financial Protection Bureau has issued a report highlighting significant consumer protection issues in the private student lending industry and making recommendations to ensure transparency. ...more

Congressman: Fix The Student Debt Crisis With Bankruptcy Reform [Video]

July 25 (Bloomberg Law) -- While economic indicators continue to worsen, US bankruptcy law still prohibits individuals from getting rid of their student debt except in the rarest of circumstances. U.S.Representative Steve...more

Ex-Dean: I Expect Some Law Schools to Close [Video]

April 25 (Bloomberg Law) -- Former University of Nebraska and University of Houston Law School Dean Nancy Rapoport tells Bloomberg Law's Lee Pacchia that she expects some law schools to close their doors because of the...more

Student Loans and Bankruptcy Discharge

In the past, student loans could be discharged by bankruptcy but not anymore. Since 1976, the bankruptcy code was changed to disallow student loans from being discharged. Recent statistics have shown that the amount of...more

Private Student Loans May Soon Be Dischargeable in Bankruptcy Again

On June 2011, United States Senators Durbin, Whitehouse, and Franken joined with several United States Representatives to introduce legislation to reinstate a fair playing field for debtors facing student loan debt by...more

Taking Back Oz Through Bankruptcy Liquidation

Breaking the illusion of the current economic crisis by taking a symbolic look at the classic film, Wizard of Oz. I propose a sequel. ...more

Facing Foreclosure? Beware the Greedy Vultures!

A former client called to tell me that her niece was being evicted from her one-family house in Queens County and asked if I could help. The niece, who had recently lost her husband after a long illness, had already paid...more

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