A Primer On Discharging Student Debt

Via: Zero Hedge

Since the Fed is doing all it can to relieve the big banks and all legacy debtors of their debt obligations, it is only fair that those incumbered with student debt – impacting those who can least afford it – and which is at least on the surface nondischargeable, are afforded the same opportunity.

So here is a primer for the rest of us – those who don’t have $1.8 trillion in very fungible reserves holed up with the Federal Reserve. As Christopher Glazek and Sean Monahan note, discharging student debt is a black-box dilemma. While bankruptcy protocols are always complex, student debt is loaded with its own special brand of illegibility. Debtors are misled by the media into thinking that discharging student loans is impossible and shamed into treating the mere notion of relief as a form of extravagant welfare-queenism – however, there is a way (or 12 ways) to show your future life prospects are characterized by a “certainty of hopelessness.”

CERTAINTY OF HOPELESSNESS: A PRIMER ON DISCHARGING STUDENT DEBT
By CHRISTOPHER GLAZEK SEAN MONAHAN,

Discharging student debt is a black-box dilemma. While bankruptcy protocols are always complex, student debt is loaded with its own special brand of illegibility. Debtors are misled by the media into thinking that discharging student loans is impossible and shamed into treating the mere notion of relief as a form of extravagant welfare-queenism.

Our original intention was not to create a satire, but rather to map the possibilities for broke postgrads interested in taking a more adversarial approach to dealing with their debt. Guides like Strike Debt’s Debt Resistors Operations Manual help combat the vili!cation of debtors and address pragmatic concerns about keeping loans out of default. For hundreds of thousands of ex-students, though, default is inevitable and discharge is the goal.

Bankruptcy filers have the option of calling for a special separate hearing, called an “adversary proceeding,” during which a bankruptcy judge determines whether a student loan can be considered in a broader bankruptcy claim. To clear the legal hurdle, debtors must not only demonstrate that they are currently unable to pay – they must also demonstrate that their future life prospects are characterized by a “certainty of hopelessness.”

Read more: here

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