White-Collar American graduates are going to be filing bankruptcy on their student loans.”
***Except that student loans are exempt from bankruptcy protection.
Not technically. The law specifies a "heightened" qualification for student loan debt for liquidation in bankruptcy proceedings. Some early cases used the IRS "poverty" criteria for forgiveness of taxes, which are so low that you almost couldn't buy food. So almost no one has qualified for student loan debt liquidation in bankruptcy. I believe this is beginning to change in some bankruptcy circuits.
THANK YOU! First thought that came to my mind. Americans are so screwed!
All the more reason we need student loan forgiveness.....