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Undue Hardship Consumer Bankruptcy

Nelson Mullins Riley & Scarborough LLP

Does the Bankruptcy Code Allow for Partial Discharge of Student Loans?

Section 523(a)(8) of the Bankruptcy Code excepts from discharge in bankruptcy certain student loans, “unless excepting such debt from discharge under this paragraph would impose an undue hardship.” By its terms, section...more

Jones Day

Second Circuit Holds That Certain Private Student Loans May Be Dischargeable Under Section 523(a)(8)(A)(ii)

Jones Day on

On July 15, 2021, a three-judge panel of the U.S. Court of Appeals for the Second Circuit held in Homaidan v. Sallie Mae, Inc., et al. that the private student loans at issue were not subject to the discharge exemption in...more

Miller Canfield

Not All Student Loans Are Created Equal - Some May Be Dischargeable in Bankruptcy

Miller Canfield on

On July 15, 2021, in the Homaidan opinion, the Second Circuit joined the Fifth and Tenth Circuits in deciding that certain student loans are dischargeable in bankruptcy. These three opinions are very important for the student...more

Hinshaw & Culbertson LLP

An Emerging Trend in Favor of Student Loan Discharges in Bankruptcy

We recently reported on a Fifth Circuit decision that ruled some private, for-profit student loans are dischargeable in bankruptcy without a showing of undue hardship—something unusual and inconsistent with the widely-held...more

Ballard Spahr LLP

Bankruptcy Court Discharges Student Loan Debt

Ballard Spahr LLP on

On January 7, 2020, Chief United States Bankruptcy Judge Cecilia G. Morris of the United States Bankruptcy Court for the Southern District of New York issued a notable opinion in the case of Rosenberg v. N.Y. State Higher...more

Womble Bond Dickinson

A Dream or a Nightmare? Who pays in a world without student loans?

Womble Bond Dickinson on

Anyone who hasn’t heard about the “student loan crisis” in the U.S. hasn’t been paying attention. U.S. student loan debt is estimated to range from between $1.2 and $1.6 trillion with more than seven million borrowers in...more

Ballard Spahr LLP

Education Dept. seeks comment on factors used to evaluate student loan discharge claims in bankruptcy cases

Ballard Spahr LLP on

The Department of Education has published a request for information in yesterdays Federal Register seeking comment on the factors used to evaluate claims of undue hardship made by student loan borrowers attempting to...more

Best Best & Krieger LLP

The Non-Dischargeable Student Loan - BB&K Attorney Cathy Ta Writes for Riverside Lawyer Magazine

Obtaining a bankruptcy discharge of debts is the primary tool in providing the "honest but unfortunate debtor" a fresh start. Yet, a student loan made or guaranteed by a governmental unit or nonprofit is excepted from the...more

Bond Schoeneck & King PLLC

Undue Hardship? Part II: The Eighth Circuit’s Totality-Of-Circumstances Test

In July, this blog explored the Second and Ninth Circuit’s application of the “undue hardship” test under 11 U.S.C. § 523(a)(8), which states that student loan debt is presumptively non-dischargeable. To refresh, in those...more

Spilman Thomas & Battle, PLLC

Bankruptcy Reaffirmation Agreements

As consumer bankruptcy filings remain an all-too-common occurrence, many lenders continue to find themselves in the often murky world of bankruptcy. As a result, on top of ensuring adherence to the numerous confusing...more

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