Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

A break could be coming for student loan borrowers

Student loan debt is a major financial burden for many graduates throughout Tennessee and the rest of the country. This debt often prevents individuals and families from buying cars and even taking out loans for homes. In order to make things easier for borrowers, many advocates are proposing drastic changes to bankruptcy laws. Currently, discharging bankruptcy debt is a difficult process that involves specific proof of hardship.

The American Bankruptcy Institute's Commission on Consumer Bankruptcy is one of the leading forces behind proposed changes to bankruptcy law. They released a 274-page report that detailed a variety of problems with current standards, including attorney costs and the disproportionate number of African-American consumers affected by debt. Bankruptcy filings reached a record low in 2018 partly due to lack of access and strict eligibility standards for student loan debt.

Filing for bankruptcy became much more difficult in 2005 after the Bankruptcy Abuse Prevention and Consumer Protection Act was passed. Despite the law's name, changes to the code prevented a lot of individuals and families in financial distress from filing. Proposed changes would make it easier to file for Chapter 7 and easier to discharge student loan debt seven years after the loan becomes payable.

Borrowers who are seeking debt relief from student loans and other accounts might be able to find legal remedies with help from an attorney. The first step is to determine eligibility and which type of bankruptcy fits the borrower's situation. Next, the lawyer will help their client file a bankruptcy petition in court. In the case of student loans, legal counsel may need to provide evidence that establishes the client meets the standards of the Brunner Test, which determines student loan discharge eligibility.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top