We received a signed stipulation today on one of our Attestation adversary cases for a borrower making $4k a month who received a 95% reduction on $380k+ of federal student loan debt. Now her payments are approximately $100 a month with a much more manageable loan balance of $15,600. Blarcom v. U.S. Dep’t of Education. While we couldn’t get rid of all of the debt, this set of loans is so much more manageable and best of all, the discharge is 100% tax free in bankruptcy. This client was working, not elderly, nor disabled. But there was no chance she’d ever make a meaningful dent in this nearly $400k of debt. I truly believe this will give her a new life and a new purpose.
95% off, and tax-free discharge/forgiveness. I’ll take that deal pretty much any day of the week!
Case No. 3:23-ap-58-BAJ
