In bankruptcy, are you allowed to favor: 1) creditors with collateral, so that you can keep the collateral; 2) creditors toward whom you have special loyalty; and 3) creditors who have extraordinary leverage against you?
The federal government is making billions of dollars for itself on student loans every year. So why double the interest rate on the loans next year? To boost those profits.
Student loans are not just burdening recent graduates. They’re now directly hurting people you wouldn’t expect. And dragging down the whole economy.
Most of the time your attorney will know which debts will be legally written off in your bankruptcy. But not always, for two reasons.