Discharging Student Loan Debt in Bankruptcy: Borrower and Creditor Perspectives

Bankruptcy Code Provisions; Educational Loan Types; Relevant Cases; Partial Discharge; Specialized Treatment in Chapters 7 and 13

A live 90-minute CLE webinar with interactive Q&A


Wednesday, December 11, 2019

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, November 15, 2019

or call 1-800-926-7926

This CLE webinar will provide practical guidance to counsel for both borrowers and creditors on student loan debt in bankruptcy, including bankruptcy court treatment of different types of educational loans, Bankruptcy Code provisions governing student loans, relevant cases and judicial precedent in all federal circuits, local practices and policies, partial discharge of student loan debt, and specialized treatment of student loan debt in Chapter 7 and Chapter 13.

Description

Student loans weigh heavy on many. Borrowers owe nearly $30,000 on average, and Americans collectively owe $1.5 trillion in student loan debt. While some believe that student loans are not forgivable or dischargeable, some circumstances allow for relief, although difficult to obtain, in the form of an outright discharge or a modification.

For many years a debtor had to make an exceedingly compelling case to prevail. But a bankruptcy court in Colorado recently found that private loans that provide an educational benefit are not covered by Bankruptcy Code Section 523(a)(8). In other words, a debtor need not meet the high burden of proving undue hardship to discharge private student loans. Some debtors have successfully challenged whether a private loan conferred an educational benefit, e.g. a loan for living expenses while studying for the bar exam.

Another approach for debtors is to seek an undue hardship discharge on the student loan's interest. In a recent decision from a bankruptcy court in Kansas, which was subsequently affirmed by the district court, the debtor sought a discharge of student loans that she took to attend community college. The court concluded that requiring the debtor to pay the remaining interest on the loan would impose an undue hardship. In short, the court discharged the interest but not the principal.

Listen as our authoritative panel of bankruptcy practitioners provides practical guidance to counsel for both borrowers and creditors on the intricacies of student loan debt in bankruptcy. The panel will review the treatment of different types of educational loans, Bankruptcy Code provisions governing student loans, relevant cases and judicial precedent in all federal circuits, local practices and policies, partial discharge of student loan debt, and specialized treatment of student loan debt in Chapter 7 and Chapter 13.

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Outline

  1. Introduction
  2. Types of student loans
  3. Educational loans under the Bankruptcy Code
  4. Undue hardship discharge
    1. Present prong: minimal standard of living
    2. Future prong: "additional circumstances"
    3. Past prong: good faith repayment efforts
    4. Other considerations
  5. Administrative discharge as an alternative
  6. Practical strategies and considerations

Benefits

The panel will review these and other vital questions:

  • What are the most effective strategies and tactics for advocating for or against the discharge of student loan debt in bankruptcy?
  • What are the most recent trends and cases?
  • What is the American Bankruptcy Insitute's approach to these issues?
  • What pending legislation may impact the discharge of student loan debt in bankruptcy?
  • What are best practices for counsel for both borrowers and creditors?

Faculty

Baxter, John
John T. Baxter

Atty
Nelson Mullins Riley & Scarborough

Mr. Baxter focuses his practice on bankruptcy law and consumer financial litigation. He has experience representing...  |  Read More

Jean-Baptiste, Natalie
Natalie Jean-Baptiste

Founder
Law Office Of Natalie Jean-Baptiste

Ms. Jean-Baptiste’s practice is focused in bankruptcy and consumer rights and student loan counseling to assist...  |  Read More

O’Keefe, Kurt
Kurt A O’Keefe

Founder
Detroit Bankruptcy Lawyer Kurt O’Keefe

Mr. O’Keefe is a solo practitioner with 30 plus years of experience in bankruptcy and other consumer law fields,...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

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10 business days after event

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