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My idea for discharging student debt

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    My idea for discharging student debt

    With Elizabeth Warren coming out with her "student debt jubilee", I thought I'd come up with a way to do this that still makes the process onerous enough so as to avoid the obvious problem of "moral hazard".

    The main idea is to create a new chapter that is akin to Chapter 13 (call it Chapter 13-A) that is more or less run like the current Chapter 13 - i.e., where a trustee will determine after thoroughly digging into the filer's finances - but for a longer period of time, such as 20 years, and such that at the end, the student debt is discharged. Of course, a regular Chapter 13, or even the quicker Chapter 7, would be done concurrently so that after the end of the standard bankruptcy, there would be nothing left but secured & student debt. The folks that are angry at Warren's jubilee plan would not be so as much, as folks would only get discharged after a very long process, with no assets.

    #2
    The solution is to make student loans bankruptable like other debts.

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