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Consumer Bankruptcy › Student Loans

Consumer bankruptcy is a process to reduce or eliminate personal as opposed to business debts. Consumer bankruptcies can be filed under either Chapter 7 or Chapter 13 of the bankruptcy code.  Debtors are... more +
Consumer bankruptcy is a process to reduce or eliminate personal as opposed to business debts. Consumer bankruptcies can be filed under either Chapter 7 or Chapter 13 of the bankruptcy code.  Debtors are eligible for Chapter 7 or Chapter 13 depending on the nature of their debts and assets. less -
Goodwin

CFPB Files Suit Against Student Loan Servicer

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On May 31, 2024, the CFPB announced that it had filed suit against a Pennsylvania-based student loan servicer for engaging in allegedly unfair, deceptive and abusive acts or practices in violation of the CFPA, 12 U.S.C. §§...more

Troutman Pepper

Consumer Financial Services 2023 Year in Review and A Look Ahead

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We are pleased to share our annual review of regulatory and legal developments in the consumer financial services industry. With active federal and state legislatures, consumer financial services providers faced a challenging...more

Troutman Pepper

Delaware Bankruptcy Court Enters $30M Stipulated Judgment Over Deceptive Student Loan Practices

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On November 20, Delaware Attorney General (AG) Kathy Jennings, along with the Consumer Financial Protection Bureau (CFPB) and 11 other states, announced a settlement in excess of $30 million with Prehired LLC and affiliated...more

Orrick, Herrington & Sutcliffe LLP

DOJ and DOE share success after first year of student loan bankruptcy discharge process

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On November 16, the DOJ and DOE announced a successful first year of their new student loan bankruptcy discharge process during 2022. The discharge process extinguishes a borrower’s obligation to pay back either some or all...more

Orrick, Herrington & Sutcliffe LLP

CFPB scrutinizes discharged private student loan billing and collection practices

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On March 16, the CFPB released a compliance bulletin discussing student loan servicers’ practice of collecting on private student loans discharged in bankruptcy. ...more

Troutman Pepper

DOJ Releases Guidance for Discharging Federal Student Loan Debt in Bankruptcy

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The U.S. Department of Justice (DOJ) has released guidance to its attorneys regarding requests to discharge student loans in bankruptcy cases. The 16-page memorandum developed in coordination with the Department of Education...more

Orrick, Herrington & Sutcliffe LLP

2nd Circuit affirms dismissal in FCRA suit

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On January 4, the U.S. Court of Appeals for the Second Circuit affirmed a district court’s decision to grant summary judgment for a credit reporting agency (defendant) in a suit alleging FCRA violations. ...more

Brownstein Hyatt Farber Schreck

Breaking Down Biden's Student Debt Relief Plan

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On Wednesday, Aug. 24, President Biden announced a three-part plan to provide student loan debt relief to tens of millions of Americans. The student loan debt relief plan includes the following components: (1) a final...more

Troutman Pepper

CFPB Releases Blog Post on the Dischargeability of Private Student Loans in Bankruptcy

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On April 12, the Consumer Financial Protection Bureau (CFPB) released a blog post titled “Busting myths about bankruptcy and private student loans.” In the blog post, the CFPB argues that certain private education loans can...more

Nelson Mullins Riley & Scarborough LLP

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

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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

Kramer Levin Naftalis & Frankel LLP

Second Circuit Affirms That Some Private Student Loans Are Dischargeable in Bankruptcy

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In Hilal K. Homaidan v. Sallie Mae, Inc., Navient Solutions, LLC, Navient Credit Finance Corporation, Case No. 20-1981 (2d Cir. 2021), the Second Circuit affirmed the opinion of the U.S. Bankruptcy Court for the Eastern...more

BCLP

Senate Considers Bankruptcy Code Changes to Tackle Student Debt Crisis - and to Make Some Colleges Pay for It

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As of May 2021, approximately 45 million Americans owe more than $1.7 trillion in student loan debt. For the arithmetically challenged, that means the average borrower has $38,000 in student loan debt....more

Epiq

The Future of Student Loans and Bankruptcy – Is There a Bubble Waiting to Burst?

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In March 2021, the U.S. Department of Education noted that student loan borrowers owed $1.6 trillion federal and private loans. For many, loans are the only option to attend a U.S. university or college for undergraduate,...more

Miller Canfield

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

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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

Robins Kaplan LLP

Financial Daily Dose 11.9.2020 | Top Story: Pfizer’s Vaccine News and Election Certainty Propel Wall Street Futures Skyward

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So . . . .  Nice, quiet week while we were gone, right? Wall Street forecasts are always dicey, but it sure looks like Pfizer’s solid vaccine news (along with this weekend’s newfound presidential certainty) could make for...more

Spilman Thomas & Battle, PLLC

All Consuming - Financial Litigation Insights: Issue 5, September 2020

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Three Important Ways the COVID-19 Pandemic is Changing the Delivery of Consumer Financial Services - The world continues to come to grips with the daily changes brought by the COVID-19 pandemic. Schools contemplate...more

Troutman Pepper

Tenth Circuit Affirms Order Allowing Discharge of Private Student Loans

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On August 31, 2020, the Tenth Circuit affirmed the United States Bankruptcy Court for the District of Colorado’s holding that certain student loans not guaranteed by a governmental unit may be discharged in bankruptcy....more

Hogan Lovells

Coronavirus: The Hill and the Headlines – COVID-19 D.C. Update – July 2020 #17

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In Washington - Senate Republicans delayed the release of their trillion dollar coronavirus relief package Thursday as they grapple with smoothing out policy disputes. ...more

Spilman Thomas & Battle, PLLC

COVID-19 WATCH LIST – Senators Warren and Brown Propose Pausing All Debt Payments

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Sen. Elizabeth Warren (D-Mass.) and Sen. Sherrod Brown (D-Ohio) have released a proposal calling on Congress to provide additional protections for consumers during the COVID-19 pandemic. Their proposal notes that an...more

Goodwin

Student Loan Servicer Appeals Bankruptcy Court’s Decision to Discharge Student Loan Debt

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On January 17, student loan servicer Educational Credit Management Corporation (ECMC) filed a notice of appeal in the United States District Court for the Southern District of New York, challenging the decision of Chief...more

Ballard Spahr LLP

Appeal Filed From Bankruptcy Court’s Decision Granting Discharge of Student Loan Debt

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Education Credit Management Corporation (“ECMC”), the guarantor of the student loan debt ruled dischargeable last month by the Chief Judge of the United States Bankruptcy Court for the Southern District of New York, is...more

Hinshaw & Culbertson LLP

An Emerging Trend in Favor of Student Loan Discharges in Bankruptcy

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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

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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

Bradley Arant Boult Cummings LLP

Bankruptcy Court Rejects Brunner “Myth” and Discharges $220K in Student Loan Debt

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Chief Bankruptcy Judge Cecelia Morris in the Bankruptcy Court for the Southern District recently reinterpreted Brunner’s “undue hardship” test and discharged over $220,000 in student loan debt. This opinion reflects a marked...more

Bradley Arant Boult Cummings LLP

First Circuit Holds that Parents’ Tuition Payments for Adult Children Are Fraudulent Transfers

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Recently, the First Circuit held that a parent’s tuition payments on behalf of an adult child do not benefit the parent’s bankruptcy estate, and a Chapter 7 trustee may therefore claw the payments back as fraudulent...more

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