Posted on 01/09/2020 10:29:31 PM PST by grundle
In what is being described as a “stunning” decision, a bankruptcy judge has ruled that a 2004 graduate of Yeshiva University’s Cardozo Law School may erase more than $220,000 in student loan debt.
The law grad, 46-year-old Kevin Jared Rosenberg, represented himself. His annual income is less than $38,000, and his monthly income after expenses runs at a deficit of about $1,500, according to the Jan. 7 opinion by Chief U.S. Bankruptcy Judge Cecelia Morris of the Southern District of New York.
The Albany Times Union, which noted the “stunning decision,” and the Wall Street Journal have coverage.
Rosenberg’s consolidated student loan was in forbearance or deferment for 10 years beginning in April 2005. He made 10 payments of varying amounts during the next 26 months.
Morris said she was applying the so-called Brunner test for discharge of student debt as it was originally intended. Since the test was created in a 1987 decision, cases interpreting it have set out “punitive standards” and “retributive dicta,” she said. Those harsh cases “have become a quasi-standard of mythic proportions, so much so that most people (bankruptcy professionals, as well as lay individuals) believe it impossible to discharge student loans,” she said.
“This court will not participate in perpetuating these myths.”
The Brunner test considers whether the debtor can maintain a minimal standard of living if forced to repay the loans, whether an inability to maintain the minimal standard is likely to persist for a significant portion of the repayment period, and whether the debtor had made a good faith effort to repay the loans.
Morris said Rosenberg was entitled to relief under the test.
(Excerpt) Read more at abajournal.com ...
Deadbeat lawyer.
Just great.
Doesn't sound like he met the criteria to satisfy this prong. Ten payments in over two years.
So the court approves outright theft because it’s all the schools fault for selling him something he couldn’t afford.
Precedent, floodgates open?
It is likely that the school already got its money and that the taxpayers who guarantee most of these loans will be taking the hit.
He’s a lawyer and makes less than $38,000?
Is he ill or disabled?
The flood gates will now be opened - deadbeats across the country will now claim they can’t maintain a comfortable living with their student debt...
Libtards have been pushing for this - and all the DemoRATs running for POTUS are promising it - now they won’t have to deliver - this judge has done it.
He must be a pretty mediocre lawyer to only earn $38,000 a year. Probably barely passed the bar exam.
One of the problems in the explosion of college costs is freely loaned money, for mostly crappy degrees, and those loans cannot be discharged in bankruptcy.
The availability of bankruptcy disciplines lenders into more carefully making loans. Drying up a lot of the easy loans puts a downward pressure on tuition fees.
Money from a hosepipe, with no regard to the likelihood of repayment, with no chance if bankruptcy is an utterly insane policy.
>> the Southern District of New York.
“Epstein didn’t kill himself”
just the fact that it’s possible to accumulate six figures of education debt should be the most alarming thing to normal people
Well, according to the article, he only briefly worked as a lawyer and for the last 10 years has been an “adventure tour guide.” Just because he has a law degree doesn’t mean he’s rich.
Cardozo Law School is a reasonably well regarded school, so he got what he paid for. Why was he was unable to maintain employment as a lawyer? He practiced law for a short time, then started his own business. Did he become bored with law? Hated the job and wanted change after racking up massive debt? Why should we be on the hook to pay his bills so he can live his life as an “adventure guide”? The government needs to get out of the student loan business.
It’s crazy to incur that kind of debt to get a law degree unless it’s from a top-tier school. For most people, law is a really poor career choice.
C’mon, man. Somebody has to chase ambulances.
There are *no* jobs for lawyers right now. Unless you were in the top 10% at an ivy, you’ screwed.
How about we take a look at the universities sitting on *billions* in endowment funds, much of it tax free, and a good chunk of it from the Saudis in exchange for Death to the Great Satan programs?
Why is it necessary for the schools to hike their outrageous tuition every year?
We need to stop putting 100% of the blame on the students. They were lied to and brainwashed all the way through the process.
Yeah, they’re young and don’t know better. There are freakin 70 year olds still paying off student loans. True story. This is a huge issue for seniors. The elderly are being crushed by this debt.
Even murderers have some chance of parole.
The universities have escaped scrutiny for far too long.
Everyone needs to return their high horses back to their barns.
Because there is an enormous surplus of lawyers right now and no work. That’s why.
Actually if this were allowed like normal loans then college would be cheaper because bad loans wouldn’t be made for crap college degrees.
The college loan bubble is Govt made. And it’s screwing up college for everyone.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.