Multiple bills have been introduced by Congress recently to address the student debt crisis, which has been consuming headlines for several years. One bill receiving significant attention, H.R. 449, proposes to reverse a 2005 law that prevents debtors from discharging private student loans in bankruptcy cases.[1] In seeming support of the bill, the President recently requested that federal agencies explore this possibility as well. The goal of H.R. 449 is to provide many in need with the intended benefits of bankruptcy: a fresh start. But the relief will likely come to the detriment of many for-profit universities.

The last major revision to U.S. business reorganization laws occurred in 1978. In the nearly four decades since then, the markets and financial products, as well as the industry itself, have evolved. Accordingly, ABI established the Commission to Study the Reform of Chapter 11 to evaluate the U.S.

[1]Most chapter 7 clients are looking for the quickest and easiest way to discharge their debts, retain or protect their assets and move on with their lives. Difficulties in achieving these results can arise when assets are disclosed or discovered after the bankruptcy filing.

[1]Since the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), bankruptcy courts have struggled with how to follow certain provisions of the Bankruptcy Code directing the compensation of chapter 7 bankruptcy trustees.[2] On Jan.