08/19/2021
"A borrower seeking to discharge their student loan debt through bankruptcy must initiate what’s called an “adversary proceeding” — which is essentially a lawsuit against their student loan loan lenders brought within the bankruptcy case — to make their case. Student loan lenders, in most instances, will oppose the borrower’s arguments. The adversary proceeding can be a long, expensive, and very invasive process. Student loan lenders, including the federal government, often have significantly more resources than borrowers, giving them a tactical edge. As a result, many student loan borrowers are not able to find success, and others don’t even try."
A new bill would allow borrowers to cancel their student loan debt through the bankruptcy process. The fact that the bill has bipartisan sponsorship is significant, and suggests that it could have a real chance of passing and becoming law.
