I was admitted to practice in 1978. I am certified as a Consumer Bankruptcy Specialist by the American Board of Certification. I regularly speak on tax and bankruptcy issues at state, regional and national conferences. Years of experience in practice before the Internal Revenue Service and Oregon Department of Revenue have given me the background to resolve a large variety of consumer tax issues.

 

Author: Kent Anderson, Esq.

19 Sep Student Loan Debt A National Bankruptcy Disaster

  [caption id="attachment_30546" align="alignleft" width="150"] Image from Dreamstime[/caption] Discharge of student loans in bankruptcy is an uphill battle according to a New York Times article. News papers these days abound with descriptions of truly desperate families saddled with massive student debt. The story of Ohio student loan debtor Doug Wallace, age 31, unemployed and legally blind is hardly unusual. In fact, it is so commonplace that bankruptcy lawyers hardly pay attention to such cases and their compelling facts. While bankruptcy discharge of student loan debt is theoretically possible, and does occur in a few cases, it is a difficult proposition at best. A debtor seeking relief from student loan debt must convince the court their financial situation is not only hopeless; they must prove it will not likely change for the better in the future. Without dramatic facts, discharge of student loan debt is denied in most bankruptcy courts.
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12 Feb Trillion Dollar Student Loan Industry Exempt From Bankruptcy

Photo Credit to DreamstimeIn 2010, the annual volume of new student loans reached 100 billion dollars. There is now more than a trillion dollars in student loan debt on the books and this type of debt is growing rapidly. A new economic crisis is about to emerge. Student loan debt cannot be discharged in bankruptcy except under the most extreme of circumstances. It is not only government-sponsored or guaranteed student loans that are exempt from bankruptcy discharge. Bank loans made to students, and relatives or friends who guarantee those loans, are facing discharge problems when the debt carries that "magic" designation as an "educational loan."
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17 Jan What Can I Do When Bankruptcy Doesn’t Get Rid Of The Tax?

Bankruptcy can stop collection and eliminate tax debt in many situations. For more details on tax discharge see the article I wrote about Bankruptcy Tax Dischargeon my personalsite. While bankruptcy can be a very useful tool in dealing with the Internal Revenue Service and state collectors,it will not solve all problems.In many cases, a tax debt that would qualify for bankruptcy discharge is rendered non-dischargeable when the taxpayer fails to file a tax return and the IRS or state collection authority uses their statutory authority to assess. Some types of tax, such as employment tax, are not subject to discharge. Fortunately, there are other ways to stopor managecollection problems. Some types of tax can not be discharged and can be collected by the IRS after the bankruptcy case is closed. Bankruptcy may not be available or appropriate for some delinquent taxpayers.
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