At Walker & Walker Law, we’re excited to share some fantastic news that marks a big win for our clients and our firm. With the implementation of Biden’s new policy, more student loan borrowers are now successfully getting debt relief through bankruptcy. This is a major victory for us and the many clients we are dedicated to helping.
Big Increase in Bankruptcy Filings for Student Debt Relief
From October 2023 through March 2024, 588 people filed cases to discharge student debt through bankruptcy—a 36% increase from the previous six months. Since the new guidance was introduced in November 2022, a total of 1,220 new cases have been filed. Most impressively, courts have provided full or partial student debt discharge in 98% of these cases.
Easier Path to Debt Relief
Previously, getting student debt discharged through bankruptcy was tough because borrowers had to prove “undue hardship.” This was a high bar that made it nearly impossible compared to other debts like credit card or medical debt. The new federal guidance has simplified this process, making it easier for government lawyers to recommend debt discharges to the courts.
Success Challenges
Even with this success, some advocates say that many eligible borrowers still aren’t seeking relief. Democratic senators Elizabeth Warren and Sheldon Whitehouse have called for more education to ensure everyone understands the new guidance.
Aaron Ament, president of the National Student Legal Defense Network, pointed out, “We are happy to see some progress in addressing a broken system, but successfully supporting a tiny fraction of those borrowers is not a cause to declare ‘mission accomplished’—it’s a sign of how much work remains.”
Walker & Walker Law: Leading The Charge
At Walker & Walker Law, we’re proud to be leading the way. From October 2023 through March 2024, we filed 52 student loan assistance petitions (SLAPs), which is 10% of the cases filed nationwide during this time. Our firm is committed to helping borrowers navigate the bankruptcy process and achieve the debt relief they need.
If you or someone you know is struggling with student loan debt, Walker & Walker Law is here to help. Contact us today to learn more about your options and take the first step towards financial freedom.
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