Source: Inside Higher Ed
More advocates believe that federal laws need to be improved to help students with heavy debt file for bankruptcy. Recently a federal judge in New York courts allowed a student with more than $200,000 to file for bankruptcy after evaluating that the student had enough hardship.
For the most part, the courts have had to evaluate students with heavy debt on hardship standard that for most, has been impossible to meet. Students have had to prove that they will have on-going hardship with the debt.
New York chief judge for the U.S. Bankruptcy Court of the Southern District, Cecelia Morris, even wrote that “most people (bankruptcy professionals as well as lay individuals) believe it is impossible to discharge student loans.”
Her decision on the student could help set a good example for other judges to consider students’ hardships with a more “expansive view.”
Read Full Story: Inside Higher Ed