Trump's student loan overhaul could lead to more bankruptcy filings, former judge says
After nearly three decades as a bankruptcy judge, Sarah Sharer Curley writes about the legal process in her new book, "The Price of Forgiveness."
TL;DR
- Bankruptcy judge Sarah Sharer Curley argues that current laws are unfair to individuals seeking debt relief, especially concerning student loans.
- She notes a significant rise in personal bankruptcy filings, attributing it to unexpected events like job loss or illness, and the increasing cost of education.
- Curley criticizes policies, including a bill passed under President Trump, that she believes create unrealistic loan caps and higher interest rates, potentially increasing bankruptcy filings.
- The bankruptcy process is described as "tortuous" due to numerous requirements and a pro-creditor legal framework, causing significant stress and emotional trauma for filers.
- Curley advocates for changes in bankruptcy law to provide individuals with a more equitable second chance, similar to the breaks given to large financial institutions.