The American Bankruptcy Institute’s Commission on Consumer Bankruptcy issued its final report last week. This is the first in a series of articles about those recommendations. To see more information about the Commission, follow this link. As a commissioner, I can tell you that the subject of student loans in bankruptcy was probably the single most popular topic of suggestions to and discussions within the Commission. And the Commission took that to heart. Most critically, we recommended bankruptcy law be re-written to allow for more student loans to be discharged — or paid — in bankruptcy cases. The very first formal recommendation called for restoring the fresh start intended by bankruptcy law. It proposed: That a student loan would be discharged in bankruptcy unless the debt was (1) made, insured or guaranteed by a government agency; (2) that it was incurred for your own education; and (3) the loan first became payable less…
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