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Tag Archives: BAPCPA

Student Loans and Bankruptcy

Student debt in America recently crept above one trillion dollars, meaning that Americans now owe more on their student loans than they do on their credit cards. And the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) changed the rules so that no student loans — public or private — could be discharged… Read More »

Excessive Consumer Spending Versus Economic Stimulus

Bankruptcy presents somewhat of a paradox. It is a deterrent to excessive consumer spending but can also serve as an economic stimulus. On a personal level, people understand that spending more than they earn results in financial problems. However, sometimes for a business to get off the ground, some investment risk is necessary. This is… Read More »

Proposed Legislation to Deal with the Growing Problem of Student Loan Debt

A Senate judiciary subcommittee is looking into the nation’s growing student loan debt problem. Government data revealed that there was a 15 percent loan default rate at private institutions in 2009. Senate Majority Whip Richard J. Durbin convened the judiciary subcommittee and sponsored legislation to allow individuals to discharge private student loan debts through bankruptcy…. Read More »

Undue Hardship and Student Loans

Prior to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, private student loans were dischargeable. However the BAPCPA changed that. It is a general fact that under the Bankruptcy Code, student loans are not dischargeable. However, under certain circumstances debtors strapped with student loans can discharge them through bankruptcy. The exception falls… Read More »

How Effective Was the BAPCPA?

In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to reform bankruptcy and in an attempt to make it more difficult for abusive bankruptcy filings to occur. By definition, reform should improve an unsatisfactory condition. Forbes ran an article in 2012 that tax rebates boost bankruptcies. This fact suggests that tax… Read More »