Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023
Source: Congress.gov ·
303 words in original text
What This Bill Does
This bill changes federal bankruptcy law to address how student loan collection is handled. It allows people in bankruptcy cases to request a determination about whether they can discharge student loan debt based on undue hardship (financial difficulty that makes it impossible to repay).
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Who It Affects
People filing for bankruptcy who have student loan debt and want to request a determination of whether they can discharge (eliminate) their student loans based on undue hardship.
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Key Provisions
- The bill amends Section 523(d) of bankruptcy law to allow debtors to request a determination of dischargeability based on undue hardship under the existing hardship standard (Sec. 2)
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What Changes
The language in bankruptcy law is modified so that courts can consider requests from debtors to discharge student loans based on undue hardship in their cases.
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Important Definitions
- Discharge: To eliminate a debt through the bankruptcy process
- Undue hardship: Not defined in the bill text
- Debtor: A person who owes debt and files for bankruptcy
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Effective Date
The bill takes effect on the date of enactment (when it becomes law), but the change only applies to bankruptcy cases started on or after that enactment date (Sec. 3).
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.