In an interesting bankruptcy case from New York, the Court determined that a debt owed to a college was NOT a student loan for purposes of the bankruptcy law, and consequently, COULD be discharged in the debtor’s bankruptcy case.
For an article discussing this case, click here.
For the full case, click here.
Normally, bankruptcy law does not allow the discharge of student loan debt, but this is a unique exception. As student loan debt is increasing and becoming more of a burden on folks, it appears more bankruptcy courts are exploring ways to allow debtors to discharge student loan debts.
If you have student loan debt, you should not always assume there are not options available.
There are law firms that specializing in helping folks with student loan debt.