A determination this month from the Bankruptcy Court in Manhattan (SDNY) may have an impact that is significant industry for education loan securitizations. Education loan asset-backed securities (SLABS) are unsecured, but market individuals typically assume that the student that is underlying aren’t dischargeable in bankruptcy. A ruling that is new the main judge of this SDNY’s Bankruptcy Court challenges this presumption.
In Rosenberg v. N.Y. State Degree Services Corp. (Jan. 7, 2020), Chief Judge Cecelia Morris discharged the student that is debtor’s and vigorously pressed straight right right right back in the “myth” that it’s “impossible to discharge student education loans. ”
The debtor is really a Navy veteran whom graduated from legislation college in 2004, but worked as a legal professional only briefly. Continue reading “Pupil Loan Discharged in Bankruptcy – only a Blip, or something like that larger?”