A bankruptcy that is recent choice discharged $221,000 in education loan financial obligation.

A fresh York bankruptcy judge ordered that a man’s $221,000 in figuratively speaking be discharged — a possibly significant development in education loan bankruptcy jurisprudence.

It is extremely hard, while not totally impossible, for borrowers to discharge figuratively speaking in bankruptcy. The federal bankruptcy rule treats pupil loans differently off their forms of unsecured debt (such as for instance personal credit card debt or medical financial obligation). Continue reading →