Will Senator Elizabeth Warren Solve Student Loans with Bankruptcy?

Not to be political, but let’s talk about politics. I’m kidding. I intend this post to be purely informational and thought-inducing.

Senator, and Presidential candidate, Elizabeth Warren has made headlines recently with proposals to cancel student loan debt. The idea of forgiving student loans is not novel, but Senator Elizabeth Warren has actually proposed a plan that would, to a large extent, accomplish that ideal. Of course, her proposal has sparked much dialogue as to the BEST WAY to handle the rising student loan debt in America. Is it to effectuate Senator Warren’s proposal? Is it best to do nothing? Or, as with many things in life, does the answer lie somewhere in the middle? That is an answer I will not be sharing in this post.

 Senator Warren’s proposal and the ensuing debate on student loans makes me wonder if the two sides to this argument might find middle ground in the Bankruptcy Code. I am wondering if Senator Warren’s IDEAL is well-accepted, but the execution is not satisfactory to the other side. And the other side may want the Debtors of student loans to file and complete a bankruptcy before the student loans are “forgiven” or “cancelled.” This could be the middle ground that will resolve this issue once-and-for-all.

Bankruptcy Courts might be a terrific forum for discharging student loans for the following reasons:

1) The bankruptcy code has already been uniquely designed to prevent “abuse.”

2) The infrastructure is already in place to handle the masses of people that will be filing bankruptcy as soon as student loans are dischargeable.

AND

3) The bankruptcy will be a one-stop-shop (a “panacea,” if you will) to reset all the debts of the filer, not just the student loans. “While you’re cancelling your student loans, you might as well reset the rest of your debts,” would be the line of thinking.

In 2020, we may very well find ourselves in an America that allows student loans to be discharged under the bankruptcy laws, just like any other debt (medical bills, credit cards, bank loans, old phone bills, repossessions, etc.). A true fresh start.

Call/text/email Attorney Lucas Ruffing today to discuss your options to reset YOUR debts in bankruptcy!

 -Lucas Ruffing
Bankruptcy Attorney
740-815-1114
LucasRuffingLaw@gmail.com