Student Loan Debt Discharged In Bankruptcy

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Given the massive amount of student loan debt is more than 1 Trillion and has exceeded credit card debt, the next financial bubble will almost certainly involve student loan defaults. In this article, read how one Debtor was able to avoid payment of student loans where Sallie Mae, Inc was held to the very same standard that all debtors are held to in regard to filing timely responses to legal proceedings duly served upon a party. Sallie Mae failed to file an answer to an adversarial proceeding filed to contest the dischargeability of over $25,000.00 in student debt. Failing to have appropriate internal processes in place to ensure that important documents are reach the appropriate party, Sallie Mae Inc was unable to set aside the default judgment that discharged this Debtor's bankruptcy.

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Published In: Bankruptcy Updates, Criminal Law Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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