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No. When you understand the legal process, you'll understand why.
Quote:
Originally Posted by uggabugga
"All of us have been discouraged from attempting to discharge student loans because it appeared that the law was a wall too high to climb for most debtors other than those with severe disabilities," Frank said. "If the district court affirms Chief Morris' order, there will be a lot more filers for bankruptcy all over the country." https://www.timesunion.com/news/arti...e-14959382.php
that's for sure.
No, not for sure at all. The District Court is going to follow the precedent set by the ruling Circuit Court, lest the judge's decision be over-turned, dooming the judge to not be nominated for an higher court.
Quote:
Originally Posted by sware2cod
...after changes by Congress (in 1998), those seeking relief through bankruptcy for student loans, have to show they meet the hardship standard
Congress, however, has never defined what undue hardship means and didn’t delegate to the U.S. Department of Education the ability to do so. The courts have been left to establish a three-pronged test of whether hardship exists: that borrowers could not maintain a minimal standard of living if they had to repay the loans, that the situation would continue to exist and that the borrower had made a good-faith effort to pay the money back.
That was the test developed by the US 6th Circuit Court of Appeals, but that is not the standard used now.
The standard used now, after the law was amended by Congress after 1998, was set by the US 2nd Circuit Court of Appeals.
That is the standard now applied by all US Circuit Courts.
That standard, in accordance with public law set by Congress, requires you to be disabled and that your disability be lasting in nature.
Quote:
Originally Posted by notnamed
Student loans get BS special protection from bankruptcy. Tuition skyrockets ahead of inflation. Coincidence?
Yes, Christen is her real name:
Christen currently has well over $225,000 in student loans. (Id. at 51); (Ex. 3-1 to 3-3). Christen estimated that $128,453 in student loans were directly attributable to living expenses
Christen used student loan money to purchase at least two vehicles—one of which was titled in her boyfriend's name. (Tr. at 64, 206) Christen's bank statements also evidenced financial irresponsibility. Christen spent much of her student loan money purchasing coffee from high-end coffee shops like Starbucks, Caribou, and Cup O'Joe; products and clothes from retailers; I-tunes; tanning sessions/products and massages; arts and crafts; OSU athletic tickets; and other food and entertainment. (2006 Chase Bank & Credit Card Statements, P's Ex. 7). Christen also made several ATM withdrawals for several hundred dollars at a time; it is unclear where this money was spent. (Id.). After reviewing all of the financial records, it is clear that Christen was spending more than the typical student on miscellaneous items and services, often incurring late fees for failing to keep up with her credit card bills. All of these expenses were in addition to the high living expenses that Christen incurred by choosing to live in Dublin, Ohio, an affluent suburb of Columbus.
In the unlikely event you're relieved of your student debt, you have to pay taxes on the amount of that relief.
I know that's true for an IBR, but I am not sure that's true for bankruptcy.
This man owed nearly double what he borrowed even though he had been making payments for fifteen years. When does it end?
I am hoping one day to have mine wiped out this way. I have multiple documented health problems, and most people that know about it are surprised I was cut off disability. I am most definitely unemployable. You will never find a legitimate employer who knows about all of my health problems and how often I have to go see doctors due to flare ups and illnesses that would even offer me employment in the first place. I have no income at all and have no chance of ever having the opportunity to have legitimate income ever again, so undue hardship should definitely be met. I just have no money to hire a lawyer to set it in motion, and legal aid refused to help me with it because I am "judgment proof." My student loan debt has grown to over $173k and keeps going up every month. I did not borrow that much. The interest keeps building on it. Mine will likely go into default at some point though because you have to prove an income to keep them in IBR and I have no way to prove that I have no income. When you file for renewal online they want you to submit your tax return. I was filing renewal using paper version and submitting copy of how much disability I was receiving. Now I have nothing. I'll never be eligible for social security, since no one will ever employ me so I have the opportunity to pay into it in the first place, so there's nothing for them to ever garnish. I'll be dead long before I'd ever reach that age anyway.
I know someone who went deep into debt via student loans, because he was coming out of cancer treatment, and was using the money to pay the numerous bills he had. Bad choice, but his reasoning in not declaring bankruptcy was he did not want to ruin his chances for a gov job requiring a security clearance, specifically the FBI.
Well, sort of worked, he is on an IBR, but he is never going to pay it off, will get the forgiveness probably when the time comes. He did end up getting a gov job after all of it.
I know that's true for an IBR, but I am not sure that's true for bankruptcy.
This man owed nearly double what he borrowed even though he had been making payments for fifteen years. When does it end?
I am hoping one day to have mine wiped out this way. I have multiple documented health problems, and most people that know about it are surprised I was cut off disability. I am most definitely unemployable. You will never find a legitimate employer who knows about all of my health problems and how often I have to go see doctors due to flare ups and illnesses that would even offer me employment in the first place. I have no income at all and have no chance of ever having the opportunity to have legitimate income ever again, so undue hardship should definitely be met. I just have no money to hire a lawyer to set it in motion, and legal aid refused to help me with it because I am "judgment proof." My student loan debt has grown to over $173k and keeps going up every month. I did not borrow that much. The interest keeps building on it. Mine will likely go into default at some point though because you have to prove an income to keep them in IBR and I have no way to prove that I have no income. When you file for renewal online they want you to submit your tax return. I was filing renewal using paper version and submitting copy of how much disability I was receiving. Now I have nothing. I'll never be eligible for social security, since no one will ever employ me so I have the opportunity to pay into it in the first place, so there's nothing for them to ever garnish. I'll be dead long before I'd ever reach that age anyway.
You ever think you should have gone to a Community collage for two years rather than waste two years at a four year rehashing high school redundancy courses .?
The person with the bankruptcy has a law degree. Why aren't you saying "Don't get a law degree?"
Kevin J. Rosenberg borrowed about $116,500 between 1993 and 2004 to get him through the University of Arizona, where he earned a history degree, and Cardozo Law School.
This guy's problem started when he went to Univ. of Arizona and majored in a garbage major. Then he compounded the problem by borrowing more money.
I'm not saying he shouldn't have gotten some relief from some of his debt, by the way.
What is so f'd up about student loans (and a good example of why I lean right and want the least amount of government in my life..) is that they hand these loans out like candy, as someone said. You can just give a name and address and get a check almost.
Then, that same Government makes it nearly impossible to get out of debt with the way they do with interest, etc. I know someone who has been paying loans for 15 years and hasn't even covered the majority of the balance yet. My friend who makes 200k+ is still in debt paying off his lawschool, it's like a circling drain you can't get out of.
I resent that the USA Government scams its citizens to get out of debt who were just trying to better themselves by attaining an education, thus creating taxpayers which equals....ding ding...more money to the Government. They win either way.
Kevin J. Rosenberg borrowed about $116,500 between 1993 and 2004 to get him through the University of Arizona, where he earned a history degree, and Cardozo Law School.
This guy's problem started when he went to Univ. of Arizona and majored in a garbage major. Then he compounded the problem by borrowing more money.
I'm not saying he shouldn't have gotten some relief from some of his debt, by the way.
Cardozo Law School is ranked 52nd by U.S. News. Unless you graduate at the top of your class it is doubtful you will ever pay back the loans you took on.
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