[DallasDeb]

Look, anytime personal bankruptcy occurs, there are usually very bad decisions that have been made by the debtor. Bankruptcy, believe it or not, has its roots in Old Testament Jewish law. Every 7 years, all debts were forgiven. I think it has something to do with debts being a type of slavery--maybe some Jewish expert can expound on this. It's probably the same reason bad information can be kept on your credit report for only 7 years.

Whether you like it or not, bankruptcy is allowable in this country. But then the legislative bodies passed a law stating Federal student loans could not be discharged in bankruptcy and then later (october 2004) the law came into effect that NO guaranteed student loans, including those of private entities (chase, boa, wells-fargo, etc.) could be discharged.

What is the purpose of bankruptcy if the most disruptive loans in a person's life (student loans) cannot be discharged in bankruptcy?

[TurboZamboni]

This most disruptive loan is also the most easily avoided.

How many parents co-sign these student loans ,but won’t do so for a Visa card or car?

(which is how this got me thinking: a co-worker whining about collections on her paycheck due to her daughter’s default.)

[RetiredNavy]

“What is the purpose of bankruptcy if the most disruptive loans in a person’s life (student loans) cannot be discharged in bankruptcy?”

So you believe that I should pay for your poor life decisions?

I personally think that student loans unsecured by real property should be illegal, primarily for the reasons mentioned above, primarily abuse of the system. I also think that if they are legal, it should be illegal for any government entity to be involved.