Archive for June, 2009

In filing a bankruptcy case, the goal of the filer is to obtain a discharge. The discharge is essentially an order of the bankruptcy court that permanently bars creditors from seeking payment on certain debts. While most debts are discharged through the bankruptcy process, student loans are an exception to this rule. This leads to the question, what qualifies as a student loan? The Bankruptcy Code is very broad in its defining of student loans. Not only are government backed student loans such as Stafford, Direct, or Perkins loans non-dischargeable, but the Code sugoes further and excepts “any indebtedness incurred…solely…

A recent study by Harvard University has found that medical bills are increasingly a contributing factor in the decision to file for personal bankruptcy. In fact, the study showed a medical bills were a contributing factor in 62% of all bankruptcies filed in 2007. Breaking down the numbers further, the study found of those filing medical-related bankruptcies, 78% had health insurance, two-thirds were home homeowners, and most had gone to college. Those with private insurance reported average medical bills of $17,749 while those who filed for bankruptcy who were not covered by health insurance reported average medical expenses of $26,971….