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Recursion

(56,582 posts) Sun Jan 26, 2020, 09:50 AM Jan 2020

Myth Busted: Turns Out Bankruptcy Can Wipe Out Student Loan Debt After All

https://www.npr.org/2020/01/22/797330613/myth-busted-turns-out-bankruptcy-can-wipe-out-student-loan-debt-after-all

For those who do try, though, Iuliano's research finds that about half the time the person gets some or all of the student loan debt erased. One study he did found that they got help through bankruptcy about 40% of the time. And he says more recent data from this past year show that figure rising to more than 50% of the time.

"So I think that's really important for bankruptcy attorneys to see that there are judges out there who are willing to grant undue-hardship discharges and that people are much more likely to obtain relief in bankruptcy for their student loan debt," Iuliano says.

Just this month, a federal judge in New York discharged more than $220,000 in student loans for a borrower. In her ruling, Chief Bankruptcy Judge Cecelia Morris criticized the fact that even many lawyers "believe it impossible to discharge student loans." She added, "This Court will not participate in perpetuating these myths."

Robert Lawless, a law professor at the University of Illinois, says, "I think we're reaching a tipping point with what the bankruptcy courts are doing." He says he hopes more people are able to get help through bankruptcy.

3 replies

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Myth Busted: Turns Out Bankruptcy Can Wipe Out Student Loan Debt After All (Original Post) Recursion Jan 2020 OP

"Some or all" and "about half the time." Better than nothing, but I'd like to know what that Squinch Jan 2020 #1

Story does not draw distinction between marybourg Jan 2020 #2

Yes, there is. Igel Jan 2020 #3

Squinch

(50,955 posts)

1. "Some or all" and "about half the time." Better than nothing, but I'd like to know what that

Reply to Recursion (Original post)

Sun Jan 26, 2020, 10:02 AM

Jan 2020

"some" is. Is it 5%? 80%?

This could be something or it could be nothing.

marybourg

(12,633 posts)

2. Story does not draw distinction between

Reply to Recursion (Original post)

Sun Jan 26, 2020, 10:05 AM

Jan 2020

private and federal student loans in bankruptcy. And I believe there is one.

Igel

(35,320 posts)

3. Yes, there is.

Reply to marybourg (Reply #2)

Sun Jan 26, 2020, 10:24 AM

Jan 2020

Partial information = misinformation. Not because the information is false, but because listeners will misconstrue the content in favor of their own biases and hopes, and the presenter is usually aware of this.

We see it a lot with bare nouns: "Parents say there's nothing wrong with sex with their kids." To make that sentence true, all you need are two parents who say that--and I'm sure given how many parents exist at least two are that warped so it's not a false statement (however reprehensible the content). On the other hand, one way of understanding it is "all parents". Another way is "most parents" or "the average parent." The point is, it doesn't say and what's read into it determines the content, and that resulting "content" is frequently false.

That's the case here. "Student loans can be forgiven in bankruptcy." Assumption from those in debt, "All loans, therefore my loan." But the assumption becomes the content, and people point to the assertion made by a lawyer to claim their assumption is true when the assertion may be markedly different.

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