Inside the 1978, the fresh new exception to help you bankruptcy launch of student education loans is gone from the higher Degree Operate towards the U.S. Personal bankruptcy Code in the eleven USC 523(a)(8) for the passing of brand new Case of bankruptcy Change Work. Because the statement written in our house out-of Agencies had suggested reversing the newest 1976 reforms, the brand new Senate type prevailed. A modification the next seasons made clear that five year limit placed on finance supported “… in whole or in region because of the a governmental device otherwise an excellent nonprofit facilities of higher education.”
In 1984, the Bankruptcy Amendments and you can Federal Judgeship Work away from 1984 then tightened up the rules on the case of bankruptcy launch because of the losing “from advanced schooling” in the wording of the guidelines. (more…)
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