A new study suggests that distressed borrowers using a simpler bankruptcy process are succeeding — and that more people like them should try.
Student loans have long been perceived as impossible to cast off in bankruptcy. Few borrowers dare to even try.
To do so, borrowers must file a separate lawsuit, enduring a costly, stressful process that came with no guarantees. In some parts of the country, they had to prove that their financial lives were “hopeless” before a judge would be willing to wipe their student debts away.
But a recent analysis has uncovered a significant shift: The vast majority of student debtors who seek discharges in bankruptcy are getting them, in large part because of a simpler legal process that was introduced three years ago.
Read The Full NY Times Article HERE.