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Help may be on the way for student debtors

Those who are struggling to get their finances under control at least in part due to unpaid student loans may be encouraged by some recent news on that front.

Back in May, Democratic Sen. Dick Durbin from Illinois introduced a bill known as the "Student Borrower's Bankruptcy Relief Act of 2019." This bill was also co-sponsored by three of the candidates for the Democratic presidential nomination -- Senators Kamala Harris, Elizabeth Warren and Bernie Sanders.

Should this legislation pass, it would alter the current bankruptcy code that prohibits federal and private student loans from being discharged in bankruptcy unless the filer is able to prove undue hardship.

As many debtors may already realize from their own experience, it is nearly impossible to prove undue hardship. Debtors have to prove they are unable to meet the minimal standard of living while they make payments on their student loan debts.

At the moment, Congress is caught up in other matters, but it is still possible that this bill could become law. If that occurs, it would be a game-changer for many former students who struggle mightily to keep up with their student loan debt repayment obligations.

Until then, however, consumer debtors have options they can exercise in order to take full advantage of all the protections that filing for bankruptcy provides.

Tampa debtors may want to learn more about their options to file for Chapter 13 bankruptcy protection. With no means test to pass, more debtors may be able to avail themselves of this form of financial relief when their debts have become unmanageable.


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