This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
In May 2011, a U.S. Representative from Tennessee introduced a bill called the Private Student Loan Bankruptcy Fairness Act of 2011. The bill proposes to make private student loans generally dischargeable in bankruptcy (like they were before the revisions in 2005) as a way of addressing the mounting student loan crisis. The bill proposes to strike subpart B of Section 523(a)(8) of the Bankruptcy Code which makes general education-purpose loans nondischargeable. However, the bill also maintains the nondischargeability of government-guaranteed student loans. But, ensures that non-profit-backed loans, although also generally excepted from discharge, are only non-dischargeable if substantially all the funds for the loan program are provided by a non-profit.
The bill was referred to a subcommittee in July 2011, and there it remains awaiting further action. Movement is unlikely until after 2013 when the new Congress sits after the November 2012 elections. It appears that the bill only has a chance of emerging from committee if the democrats retake the House. This blog will track any developments related to this bill as they arise.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 954-484-9987. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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