News & Analysis as of

Debtors Student Loans Bankruptcy Code

Orrick, Herrington & Sutcliffe LLP

Eighth Circuit Bankruptcy Appellate Panel upholds discharge of private student loan debt

On August 12, the U.S. Bankruptcy Appellate Panel for the 8th Circuit upheld a lower court’s ruling that discharged a debtor’s student loan debt owed to a state bank, finding that repayment would impose an undue hardship....more

Ballard Spahr LLP

Justice Department announces new guidance for handling bankruptcy discharge of federal student loans

Ballard Spahr LLP on

In conjunction with efforts to forgive federal student debt for certain borrowers, President Biden’s Justice Department recently announced new guidance for its attorneys to use when deciding whether to recommend that a...more

Nelson Mullins Riley & Scarborough LLP

Does the Bankruptcy Code Allow for Partial Discharge of Student Loans?

Section 523(a)(8) of the Bankruptcy Code excepts from discharge in bankruptcy certain student loans, “unless excepting such debt from discharge under this paragraph would impose an undue hardship.” By its terms, section...more

Bradley Arant Boult Cummings LLP

Old Myths Die Hard: District Court Reverses Bankruptcy Court’s Discharge of Student Loan Debt Under Brunner

A district court judge recently reversed and remanded a well-known bankruptcy decision discharging a significant student loan debt. In the Southern District of New York, Judge Philip Halpern, reviewing the bankruptcy court’s...more

McGlinchey Stafford

What Does The Homaidan Case Change About Private Student Loans In Bankruptcy?

McGlinchey Stafford on

The non-dischargeability of private student loans in bankruptcy proceedings has long been assumed to be almost absolute, but a July 15, 2021 decision (Homaidan v. Sallie Mae) by the U.S. Court of Appeals for the Second...more

Patterson Belknap Webb & Tyler LLP

That’s a Brunner, Man. Supreme Court Declines to Revisit Overly Rigid Standard for Discharge of Student Loans in Bankruptcy 

On Monday, the United States Supreme Court denied Thelma McCoy’s petition for a writ of certiorari to the United States Court of Appeals for the Fifth Circuit, passing up a golden opportunity to bring uniformity to the...more

Fox Rothschild LLP

Second Circuit Stands By Brunner Test For Discharge Of Student Loan Debt

Fox Rothschild LLP on

When the Bankruptcy Code was first enacted in 1978, student loan debt could be discharged either after the passage of five years since the repayment obligation began, or if repayment would impose an undue hardship on the...more

Tarter Krinsky & Drogin LLP

Bankruptcy Basics and Recent Developments

Scott Markowitz, co-chair of the Bankruptcy and Corporate Restructuring Group, and Rich Schoenstein, host and Litigation partner, talk Bankruptcy Basics and Recent Developments on the latest episode of Law Brief. Scott and...more

Hinshaw & Culbertson LLP

An Emerging Trend in Favor of Student Loan Discharges in Bankruptcy

We recently reported on a Fifth Circuit decision that ruled some private, for-profit student loans are dischargeable in bankruptcy without a showing of undue hardship—something unusual and inconsistent with the widely-held...more

Bradley Arant Boult Cummings LLP

Take It to the Limit: Increase in Chapter 13 Debt Limits

Individuals have several options when filing bankruptcy. Chapter 13 is often preferred for individuals with regular income who wish to keep their homes and other secured assets. In a Chapter 13 filing, the court will approve...more

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