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The newest arrangements of your latest bankruptcy rules enable it to be very hard to release education loan loans although processing personal bankruptcy

The newest arrangements of your latest bankruptcy rules enable it to be very hard to release education loan loans although processing personal bankruptcy

One month before then–presidential candidate Joe Biden secured the endorsement of his former rival Elizabeth Warren, he accepted her bankruptcy plan for student loan relief. “I’ve endorsed Elizabeth Warren’s bankruptcy proposal, which … allows for student debt http://www.getbadcreditloan.com/payday-loans-az to be relieved in bankruptcy and provides for a whole range of other issues,” Biden said at the time.

It marked an almost stunning reversal. The strictest provisions of the current bankruptcy law, which make it nearly impossible to discharge student loan debt even while filing bankruptcy, were championed by Biden personally in 2005 when he was a senator. He sparred for the good legislative reading about the proposal at the time with Warren, when she was still a Harvard law professor. Biden’s shift on bankruptcy and student debt was perhaps the very strongest evidence that he was running to be a different politician as president than the profile he cut in the Senate.

Despite vowing to change just how college loans is treated in the bankruptcy proceeding, the latest government has been which consists of discretion so you can limitation earnings

The bill created a really onerous processes to possess shedding student obligations.