Another Step Towards Getting Rid of Student Loans Through Bankruptcy

Posted by on Sep 22, 2010 in Chapter 13, Chapter 7, Student Loans | No Comments

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.  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.  I’m cautiously optimistic about this bill but it’s certainly good news for those with overwhelming student loans.

Photo credit: bookgrl