nytimes.com
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A new study suggests that distressed borrowers using a simpler bankruptcy process are succeeding — and that more people like them should try.

The process which enables this was introduced during the Biden administration.

  • daannii@lemmy.worldEnglish
    2·
    16 hours ago

    . I quoted at the wrong age for that specific example. That one was 65.

    I put “50+” because the other example was for a 47 year old.

    • atzanteol@sh.itjust.worksEnglish
      2·
      15 hours ago

      The point is that it isn’t their age and the amount in absolute numbers. It’s the amount as a percentage of income and how long they have been struggling to pay off the loan that matters.

      Under Brunner, debtors must answer three questions before their debt can be dismissed: Can they currently pay the loans and maintain a minimal standard of living? Is their situation likely to persist for a significant portion of the repayment period? And have they made a good-faith effort to repay the loans?

      Under the newer approach, each piece of the test becomes easier to pass if the debtor can check certain boxes. For example, if a debtor’s allowed expenses equal or exceed his or her income, that may satisfy the first question. Being over 65, or having loans in repayment status for at least 10 years, for example, would fulfill the second question.