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A cancer patient’s upcoming bankruptcy trial over her student loan debt highlights how a nearly unwinnable court test keeps many in need from discharging their educational borrowing, but mounting public and political pressure could change that.
In its January 14, 2022 decision in In re Wolfson, the United States Bankruptcy Court for the District of Delaware discharged Chapter 7 debtor Ryan K. Wolfson of nearly $100,000 in student loan debt.
A pair of appeals over a Delaware bankruptcy court's decision last month to allow a bankrupt borrower to discharge nearly $100,000 in student loan debt have been voluntarily dismissed by the lender and the U.S. Department of Education.
Finding that a prevailing test for student loan hardship discharges has become "unmoored" from its origins, a Delaware bankruptcy judge granted a Chapter 7 discharge of a long-unemployed and underemployed, physically challenged man's nearly $100,000 student loan debt.