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What is the Student Borrower Bankruptcy Relief Act of 2019?

On Behalf of | Sep 10, 2019 | Bankruptcy

If you have looked into filing bankruptcy in Indiana before, then you probably know that student loan debt is not dischargeable. Basically, you cannot get rid of it any other way than paying it off. However, that may change. The state of the student loan environment is one that is not very stable right now. Too many people owe too much debt that it is crippling a large segment of the population. With the only option being to pay it off and incomes not being high enough do so, many people struggle to make payments. If you are one of those people, then you may like to hear about the Student Borrower Bankruptcy Relief Act of 2019.

This act, according to Forbes, is a proposal for how to end the student loan crisis. Propelled by Elizabeth Warren, the act seeks to allow you to get rid of your student loans through bankruptcy. Essentially, it changes the bankruptcy act to remove the part that prevents student loans from being included as part of your dischargeable debt.

If this bill passes, then you would file for bankruptcy and be able to list your student loans with your other debts. You would then either be able to have it forgiven by the court or include it in your repayment if you are filing Chapter 13.

Currently, your only option to get rid of student loans through bankruptcy is proving undue hardship, which is a difficult process. If this act becomes law, then it will make it much easier for you to get out from under student loan debt. This information is for education and is not legal advice.