The Oklahoma Bankruptcy Lawyers at Atkins & Markoff Alert Public to Government Report Suggesting that Private Student Loans Should Be Dischargeable in Bankruptcy

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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 report that was recently published by two federal government agencies that suggest that private student loan debt should be dischargeable for someone who files for bankruptcy protection. This report was based on the current conditions surrounding the overall amount of student loan debt in the United States and the recent market for offering and underwriting private student loans.

The Oklahoma bankruptcy lawyers at the law firm of Atkins & Markoff hereby alert the public of a recent report that was released by two federal government agencies regarding the status of student loan debt in the United States. The report encapsulated the current state of student loan debt in the United States and it went on to suggest that private student loans should be dischargeable if someone files for bankruptcy protection.

Specifically, the report was entitled, “Private Student Loans” and it was released on July 20, 2012. It was written by the Consumer Financial Protection Bureau in conjunction with the Department of Education. It was presented to the Senate Committee on Banking, Housing, and Urban Affairs, the Senate Committee on Health, Education, Labor, and Pensions, the House of Representatives Committee on Financial Services, and the House of Representatives Committee on Education and the Workforce.

The report began with a list of current statistics that relate to the state of student loan debt in the United States. According to estimates formulated by the Consumer Financial Protection Bureau, overall student loan debt in the United States exceeded $1 trillion in 2011. $864 billion of that debt was federally financed and approximately $150 billion consisted of private loans. The report also compared the recent ‘boom’ in private student loan funding to mortgage lending in recent years.

Finally, the report suggested that private student loans should be able to be discharged if a borrower files for bankruptcy protection because of the amount of debt that each borrower owes in payments each month. Such a change would alter recent laws that have been passed that include the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Currently, student loan debt cannot be discharged in a bankruptcy case outside of relatively rare circumstances. However, other debts can still be reorganized or eliminated. The Oklahoma bankruptcy attorneys at Atkins & Markoff encourage those who may be struggling with their finances to seek a thorough review of their financial situation by an experienced 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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