Proposed Bill Could Allow Discharge of Private Student Loans in Bankruptcy
Some good news for debtors struggling with private student loan debt: a bill is headed to the Judiciary Committee which may allow private student loans to be discharged in bankruptcy. I received this email from the National Association of Consumer Bankruptcy Attorneys earlier today:
Dear NACBA Member,
Yesterday, the House Judiciary Subcommittee on Commercial and Administrative Law took the first steps in reversing language in the 2005 bankruptcy law related to private student loan debt by approving on a 6-3 party line vote H.R. 5043, the Private Student Loan Bankruptcy Fairness Act. NACBA has been actively involved in helping to draft and supporting the legislation which will restore fairness in student lending by treating privately issued student loans in bankruptcy the same as other types of private debt. Under the bill, privately issued student loans will once again be dischargeable in bankruptcy. To view a text of the legislation, go to http://thomas.loc.gov and insert the bill number.
The bill now goes before the full Judiciary Committee. Though time is short in this legislative session, we are hopeful that the bill will see full Committee action before the end of the year. Similar legislation has been introduced in the Senate (S. 3219) by Senators Durbin (D, IL), Whitehouse (D, RI) and Franken (D, MN).
We know that many NACBA members are confronted by clients with substantial student loan debt, both private and government-issued. Yesterday’s action was the first step in restoring fairness to the bankruptcy process.
Student loans are a growing concern for many families. For those with Federal Student Loans they can opt for deferral or Income-Based Repayment. There is very little that can be done to help those struggling with private student loan debt. I’ll keep you posted on the bill’s progress.
Prepare to be Integrated
Happy Birthday Integrated Circuit, Lawbylund.com
Fifty years ago from the date of this post, the integrated circuit was born. Despite the absence of Napa valley wine, or celebrations among gaggles of nerds and engineers, the Law by Lund blog launched and was celebrated with our viewing of the new Star Trek movie amongst a dozen late night movie goers at the Cedar Creek movie theater in Mosinee, Wisconsin (wife’s choice, actually, but I won’t disavow my Treekiedom.)
Blogging takes a commitment of time, which I’m always short of, and energy, which I tend to generate out of sheer necessity at times. However, I hope to provide a resource for the Internet community that will supplement their own queries about such things as bankruptcy, estate planning and divorce. I don’t think a single attorney can become an expert in all three areas of the law simultaneously, and in an age that pressures us to specialize, I am convinced that there is room for the Focused Generalist.
Control freaks are doomed
Transition is the common thread that weaves bankruptcy, estate planning and family law into a tight knot at times. The one certainty is that life changes, and the one uncertainty is how things will settle. Human psychology has created an untenable position for the control freak: no matter how many times you sweep a floor, dirt remains. I’m personally fascinated by the interplay of stability and chaos, and have taken great pains to explore those issues in an academic setting. However, the real joy is watching how people overcome great challenges and obstacles in their environment to improve their lives, press forward to support their families, and take risks to build new dreams.
I’ve designed the site to make it easy for readers interested in these areas of law to find me. I hope to provide guidance and am excited to use the Internet as a tool to improve legal service to my clients.
The next big project: Integration
Prepare to be Integrated
A step-by-step bankruptcy filing process is in the final stages of completion. Online forms will soon be available that will provide clear, simple directions to those who use our office to file bankruptcy. Our goal is to maximize our chances of a successful plan or discharge, while easing the burden on our copy machines, pencils, and in turn, our trees. I’ve studied the most promising vendors in the market to find a form system that is secure and easy to use. I also plan to provide calendar services that will integrate with most PDAs and implement informational videos to explain the basics of bankruptcy filing.
I hope to provide integration: using the same circuits that share this blog’s anniversary to make the bankruptcy process easy to understand and more approachable.