The Oklahoma Bankruptcy Lawyers at Atkins & Markoff Alert Public to Washington Post Story of Bill Allowing Discharge of Private Student Loan Debt in Bankruptcy Cases

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The Oklahoma bankruptcy attorneys at Atkins & Markoff, whose law firm Web site URL can be found at http://www.OklahomaBankruptcyLawCenter.com, hereby alerts the public of a March 20, 2012 story in the Washington Post stating that a bill has been introduced in Congress that, if it becomes law, would allow debtors to discharge their private student loan debts in bankruptcy cases. Federal or publicly-funded student loans would still not be eligible for discharge, but such a bill could lead to billions of dollars being able to be discharged by struggling consumers.

The Oklahoma bankruptcy lawyers at Atkins & Markoff hereby alert the public of a report that appeared in the Washington Post on March 20 that detailed the introduction of a bill in Congress that, if it passed and became a law, would allow people who owe private student loan debt to discharge that debt in bankruptcy cases. Those student loans that are public, or guaranteed by the government, would still not be eligible for discharge.

The bill was introduced by Senator Richard Durbin of Illinois, and the stated reasons for the introduction of this bill include the concern that student loan debt could become a ‘debt bomb’ that could derail the current economic recovery. According to the federal government, almost $900 billion is owed in student loan debt in the United States.

In addition to the overall number, borrowers older than 60 years of age owe a total of $36 billion in student loan debt. These debts represent loans that were taken out relatively recently as people went back to school during the recession and cosigners of loans by parents of children who are currently unable to make the payments.

In addition, statistics provided by the Federal Reserve Bank of New York reveal that more than 25 percent of all student loan borrowers in the United States currently have balances that are past-due. Finally, that same set of data provided reveal that nearly one-third of all student loan borrowers in the United States are 40 years old or older.

The Oklahoma bankruptcy lawyers at Atkins & Markoff have been working with consumers who needed to file for bankruptcy protection for many years, and while student loan debt still cannot be discharged, anyone who is experiencing financial trouble and who owes student loan debt should still have their financial situations reviewed by a professional.

About Atkins & Markoff

The Oklahoma bankruptcy lawyers at Atkins & Markoff, whose law firm Web site URL can be found at http://www.OklahomaBankruptcyLawCenter.com, is a law firm comprised of Oklahoma bankruptcy attorneys who have been representing consumers since 1999 in bankruptcy-related legal matters that include Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases as well as debt consolidation and credit counseling matters. The firm represents consumers in bankruptcy cases throughout the state of Oklahoma.

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Dan Markoff
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