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On May 7, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) issued its long-awaited Notice of Proposed Rulemaking (NPR) for debt collection. These proposals precede a final rule that will be known as Regulation F and will be the first rules issued under the tenure of Director Kathleen Kraninger. The NPR was published in the Federal Register on May 19, 2019.[1]
Whether it’s a client in financial difficulty or a client pursuing the collection of assets or debts owed, insolvency issues play a prominent role for federal practitioners with commercial and general litigation practices. However, the relatively small size and collegial nature of the bankruptcy bar in many jurisdictions — coupled with the need to move quickly when handling disputes in bankruptcy to preserve value — sometimes lead to relatively informal discovery practices in bankruptcy court.
On May 19, 2019, Senator Dick Durbin introduced Senate Bill 1414, which proposes a simple solution to the ongoing question of how student loans should be handled in bankruptcy. It would strike § 523(a)(8) in its entirety from the Bankruptcy Code, thereby making any governmental or private student loan immediately dischargeable. It is unlikely that this bill will be passed in this Congress, at least not without significant amendments.
