Bankruptcy Code Should Be Amended to Allow Private Student Loans to Be Discharged According to Latest ABI Quick Poll
Alexandria, Va.— A majority of respondents (69 percent) in a recent ABI Quick Poll “agreed strongly” or “agreed somewhat” that § 523(a)(8) of the Bankruptcy Code should be amended to allow private student loans to be discharged in bankruptcy. Section 523(a)(8) of the Bankruptcy Code prohibits the discharge of student loans in bankruptcy, unless payment of the student loans would impose an undue hardship upon the debtor or the debtor’s dependents. This section has been part of the bankruptcy law for more than 25 years and was amended in 2005 to include private student loans. Student loan debt nationally topped $1 trillion in 2012, more than credit cards, car loans or any other type of consumer debt. A recent report by the Consumer Financial Protection Bureau and the U.S. Department of Education said that Congress should consider revisiting the bankruptcy exemption for private student loans. Conversely, 30 percent of respondents (24 percent “strongly” and 6 percent “somewhat”) believe that § 523(a)(8) of the Bankruptcy Code should not be amended to allow private student loans to be discharged in bankruptcy. Two percent did not know/had no opinion on the poll. ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://news.abi.org/quick-polls/archive to access the results of previous ABI Quick Polls. ### ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes over 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
Monday, November 12, 2012