Chapter 28 introduces you to some important concepts in the U.S. Bankruptcy Code. Bankruptcy laws have evolved significantly from the days of English Common Law.
For example, debtor’s used to be imprisoned for the non-payment of debts. Today, a debtor may file Chapter 7, receive a discharge on certain debt obligations and obtain a fresh start.
Student loans are a controversial topic in bankruptcy. In order to receive a discharge of your student loans, you must prove undue hardship. Recently, a study was conducted and it found that only 40% were successful in discharging loans. Many never even try. Here is a link to an article in the Huffington Post: www.huffingtonpost.com/steve-rhode/bankruptcy-student-loans_b_2416031.html (Links to an external site.)
The question this week is do you think that student loans should be dischargeable in bankruptcy? If they were, do you think it would make access to education more difficult? Would it have the effect of raising or lowering tuition?
FYI…The following is a YouTube video describing conditions and what it was like to be in a debtor’s prison before the advent of modern bankruptcy laws: Link (Links to an external site.)