Case summary:Student loan debt has reached its peak with an amount of $1.2trillion outstanding amount. This sector accounts for the highest delinquency among all forms of debts. Approximately about 20 percent are in default. Governments are seeking plans to counter this problem. The U.S. Department of Education has decided to collect the debt in three ways.
To explain: The grounds for discharge of student loan under the Bankruptcy Code.
Case summary: Student loan debt has reached its peak with an amount of $1.2trillion outstanding amount. This sector accounts for the highest delinquency among all forms of debts. Approximately, about 20 percent are in default. Governments are seeking plans to counter this problem. The U.S. Department of Education has decided to collect the debt in three ways.
To explain: The argument to allow the discharge of student loan.
Want to see the full answer?
Check out a sample textbook solutionChapter 15 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
- What legal obligations does a business have in terms of taxation, including income tax, sales tax, payroll tax, and compliance with tax reporting and payment deadlines?arrow_forwardWhat are the legal requirements for creating and enforcing property liens and mortgages?arrow_forwardWhat are the legal requirements and considerations related to bankruptcy and insolvency, including the rights of creditors and the process of debt restructuring or liquidation?arrow_forward
- Laws relating to creditors’ rights are extremely complex and may vary by state. And yet, businesses that occupy the creditor position must comply fully with these technical requirements, including filing, time, and notice provisions, if that business wishes at some point in the future to seize a debtor’s assets or foreclose upon real property. 1. Do you think that the necessity of written documentation of legal transactions is more urgent in the area of creditors’ rights than it is in other areas of law studied in this class, or in Business Law I? State your position on this question, and then justify your perspective, making sure to reference the text and materials in the course to support your viewpoint. 2. Locate a recent article pertaining to the "homestead exemption" that you studied in Unit 5 text and materials. Using the article and your understanding of the "homestead exemption" answer the following questions. A. What is a "homestead exemption?" B. How does the article you…arrow_forwardFACT PATTERN TWO A debtor has an automobile worth $5000. The federal exemption applicable to her is $3225. The trustee sells the car and gives the debtor the amount of the exemption. The debtor, exhausted by the bankruptcy proceedings, takes the money and spends it on a six week vacation in Mexico. Is this abuse of the bankruptcy system?arrow_forwardWith respect to debtors the main goal of bankruptcy is to ensure that creditors are paid. True Or Falsearrow_forward
- What key factors should a company's management consider when navigating through a bankruptcy situation and devising a strategic plan to mitigate risks, maximize recovery, and ensure the best possible outcome for stakeholders?arrow_forwardThe shareholders of Escalante company are suing the external auditors of the company. The shareholders are upset because the management of Escalante company produced overly positive financial statements and used these financial statements to lure new investors. Escalante company is now bankrupt, the managers are facing prison time, and the external auditors are in monetary damages settlement talks with shareholders of Escalante company. What role could the public company accounting oversight board (PCAOB) have played in avoiding this catastrophe?arrow_forwardIf a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director and how are these determined by the Courts?arrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education