Pupil Loan Discharged in Bankruptcy – only a Blip, or something like that Bigger?

A determination this month from the Bankruptcy Court in Manhattan (SDNY) might have an impact that is significant industry for education loan securitizations. Education loan asset-backed securities (SLABS) are unsecured, but market participants typically assume that the student that is underlying aren’t dischargeable in bankruptcy. a brand new ruling by the chief judge of this SDNY’s Bankruptcy Court challenges this presumption. Continue reading →