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Isn't the difference that bankruptcy will not erase student debt. Debt collectors otherwise have to take that into account when collecting, but not for student
by amalag 11y ago
Isn't the difference that bankruptcy will not erase student debt. Debt collectors otherwise have to take that into account when collecting, but not for student debt.
- fiatmoney 11y agoBankruptcy can reduce or restructure the actual debt, but that doesn't affect court orders of limited payment towards a debt - they're separate issues (bankruptcy I suppose voids previous orders of payment, but discharagability doesn't affect the court's order of payment). It's extremely common for someone to owe a very large, possibly non-dischargable debt (as a result of a criminal fine, lawsuit, alimony, child support, etc), and the court order is something to the effect of "pay $100 / mo", even if this would never actually pay off the debt.
- Lawtonfogle 11y agoIt is also possible for the ordered payment to be too high to be able to be paid, such as in the case when someone lost a well paying job during a recession but the other party's lawyer argues that they are taking a reduced wage job so they don't have to pay in full. While such cases may be rare, they still signify a problem in our legal system.
- cuckcuckspruce 11y agoThe most prominent case that I can think of is Dave Foley's run in with Canadian family court law[1]. [1] http://www.thestar.com/entertainment/television/2011/03/11/comedian_dave_foley_fears_arrest_owes_500000_in_childsupport.html http://www.thestar.com/entertainment/television/2011/03/11/c...