Federal Reserve Chairman Talks Student Loans and Bankruptcy

Student Loan debt is a unique liability. It’s one of the hardest forms of debt to discharge in bankruptcy. After more than a decade of students strapped to their loans with no end in sight, the Federal Reserve Chairman Jerome Powell said  “I think alone among all kinds of debt, we don’t allow student loan debt to be discharged in bankruptcy … I’d be at a loss to explain why that should be the case.

Read more about his Senate Hearing testimony

https://getoutofdebt.org/109980/federal-reserve-chairman-says-makes-no-sense-restrict-student-loan-debt-bankruptcy

https://www.marketwatch.com/story/new-fed-chair-wonders-why-student-debt-cant-be-discharged-in-bankruptcy-2018-03-01

Learn more about student loan Repayment Options

https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven

Do have more questions about student loans and bankruptcy?

 Navigating student loan repayment can be tricky. If you have any questions about bankruptcy, we can help you walk through the process. Call us today at 405.801.2515.

For More Info: Bankruptcy lawyer Norman

Can You Discharge an IRS Debt?

We're often asked if one can discharge IRS debt. The answer is yes, but certain criteria must be met. A year ago, we had a client that owned #200,000 in back taxes. And, we were able to discharge $170,000 of that debt because of the 3-year, 2-year and 240-day rules.

The Bankruptcy Code sets specific time periods that determine if you can discharge your taxes, commonly known as the 3-year, 2-year and 240-day rules (the "3-2-240").

Under these rules, you can discharge income taxes that were due three years before you filed for bankruptcy as long as it's been at least two years since you filed the tax forms and 240 days since the taxes were assessed.

There are some exceptions, though, and these rules don't apply to other types of taxes such as property taxes. So, to discharge back income taxes, be aware that you must meet the requirements of all three rules.

Have a specific question about bankruptcy? We'd love to help. Reach out to us today at (405) 801-2515 for a free consultation!

For More Info: Bankruptcy attorney Norman