Alexandria, Va. — The American Bankruptcy Institute's (ABI) updated Graduating with Debt: Student Loans under the Bankruptcy Code, 2^nd Edition, has been revised and expanded to highlight a number of significant changes in one of the most volatile and important consumer debt arenas. Student loan debt in the U.S. exceeds $1.3 trillion — more than any other type of consumer debt except for mortgage loans — while student loan defaults have been increasing at an explosive pace. Authors Prof. Susan E. Hauser of North Carolina Central University School of Law (Durham, N.C.) and attorney Dr. Daniel A. Austin (Erie, Pa.) reunited to write the updated edition to provide insights about revised procedures on loan forgiveness and rehabilitation, as well as new case law — such as conflicting court decisions about the scope of § 523(a)(8)(A)(ii) and the Brunner test. The book also includes expanded coverage of special issues in chapter 13 cases, updates on litigation issues, legislative initiatives regarding student loan debt forgiveness, and much more. This comprehensive guide is a must for any practitioner involved in a student loan case.

“One of the things that we have in the new edition is much more coverage of case law because of the volume of cases and decisions between 2013 and 2016,” Prof. Hauser said on a recent podcast about the new edition of Graduating with Debt. “I think that reflects some increase in filings that are attributable to or are dealing with student loan debt.”

With unfavorable prospects for legislative relief for student loan debt in bankruptcy, Dr. Austin points out that the case law updates are key to both practitioners and consumers involved in student loan debt issues. “Conscientious courts have considered other ways to address individual student loan issues,” Dr. Austin said on the podcast.

To order your copy of Graduating with Debt: Student Loans under the Bankruptcy Code, please visit the ABI Bookstore. Members of the press looking to access a preview of the book or to arrange an interview with the authors should contact ABI Public Affairs Manager John Hartgen at 703-894-5935 or jhartgen@abiworld.org.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abi.org/education-events.

Article Tags

Consumer Bankruptcy

Consumer Debt

Discharge/Dischargeability

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Judge Name - Do not use it.

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Bankruptcy Becomes an Option for Some Borrowers Burdened by Student Loans

Submitted by jhartgen@abi.org on Tue, 2016-12-27 00:00

Borrowers are beginning to win battles to erase some student loans in bankruptcy court, overcoming stiff obstacles that have generally blocked that path except in extreme cases of financial hardship, the Wall Street Journal reported today. Since March, several bankruptcy courts have allowed borrowers to cancel private student loans with a new legal argument that relies on vague wording about the legal definition of a student loan. Without proving extreme hardship, the Bankruptcy Code says that a borrower can’t discharge a loan made for an “educational benefit.” This language has opened a window to cancel loans for students who argue that their loans falls outside this category of debt. Such reasoning has been applied to loans obtained to attend schools without accreditation or to study for a bar exam. The argument only applies to a slice of the private student-loan market, which makes up less than 10 percent of the more than $1.3 trillion in outstanding student debt. The federal government dominates the student-loan market and isn’t as vulnerable in bankruptcy proceedings. Read more. (Subscription required.)

Now available in the ABI Bookstore: Pick up your copy of the updated and revised Graduating with Debt: Student Loans under the Bankruptcy Code, Second Edition!

Article Tags

Court Administration

Consumer Bankruptcy

Consumer Debt

Discharge/Dischargeability

Tuesday, December 27, 2016 - 12:00