Student Loans & Bankruptcy

From information commonly available, student loans (as a matter of presumably public policy) are generally very difficult to discharge in bankruptcy:

This post mentions something very interesting about why someone might want to file bankruptcy even though they have student loans.

To free up capital by discharging unsecured debt to OTHER parties:

http://blog.startfreshtoday.com/2008/04/

Not only would the debtor get the benefit of the automatic stay, but the person filing bankruptcy would be able to wipe out other types of unsecured debts that ARE dischargeable (is that a word?).

So, wouldn’t this encourage people in college to put more purchases on dischargable funding sources if there is any risk that they might file for Chapter 7 or even 13 in the future?

Something to think about…

Related posts brought to you by Yet Another Related Posts Plugin.