HR 5899 — To amend title 11 of the United States Code to make debts for student loans dischargeable.

Summary

This bill permits a borrower to discharge in bankruptcy a nonprofit, government, or private student loan, or an obligation to repay an educational benefit, scholarship, or stipend.

Bill Text

• Introduced Introduced in House Current html February 13, 2020

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill removes the existing exception for student loans from discharge in bankruptcy, effectively making such debts dischargeable.

• 11 U.S.C. § 523

  (8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents, for—

  Student loans can now be discharged in bankruptcy without any hardship requirement.

• 11 U.S.C. § 523

  (9) for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance; → (8) for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance;

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

• 11 U.S.C. § 523

  (10) that was or could have been listed or scheduled by the debtor in a prior case concerning the debtor under this title or under the Bankruptcy Act in which the debtor waived discharge, or was denied a discharge under section 727(a)(2), (3), (4), (5), (6), or (7) of this title, or under section 14c(1), (2), (3), (4), (6), or (7) of such Act; → (9) that was or could have been listed or scheduled by the debtor in a prior case concerning the debtor under this title or under the Bankruptcy Act in which the debtor waived discharge, or was denied a discharge under section 727(a)(2), (3), (4), (5), (6), or (7) of this title, or under section 14c(1), (2), (3), (4), (6), or (7) of such Act;

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

• 11 U.S.C. § 523

  (11) provided in any final judgment, unreviewable order, or consent order or decree entered in any court of the United States or of any State, issued by a Federal depository institutions regulatory agency, or contained in any settlement agreement entered into by the debtor, arising from any act of fraud or defalcation while acting in a fiduciary capacity committed with respect to any depository institution or insured credit union; → (10) provided in any final judgment, unreviewable order, or consent order or decree entered in any court of the United States or of any State, issued by a Federal depository institutions regulatory agency, or contained in any settlement agreement entered into by the debtor, arising from any act of fraud or defalcation while acting in a fiduciary capacity committed with respect to any depository institution or insured credit union;

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

• 11 U.S.C. § 523

  (12) for malicious or reckless failure to fulfill any commitment by the debtor to a Federal depository institutions regulatory agency to maintain the capital of an insured depository institution, except that this paragraph shall not extend any such commitment which would otherwise be terminated due to any act of such agency; → (11) for malicious or reckless failure to fulfill any commitment by the debtor to a Federal depository institutions regulatory agency to maintain the capital of an insured depository institution, except that this paragraph shall not extend any such commitment which would otherwise be terminated due to any act of such agency;

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

• 11 U.S.C. § 523

  (13) for any payment of an order of restitution issued under title 18, United States Code; → (12) for any payment of an order of restitution issued under title 18, United States Code;

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

• 11 U.S.C. § 523

  (14) incurred to pay a tax to the United States that would be nondischargeable pursuant to paragraph (1); → (13) incurred to pay a tax to the United States that would be nondischargeable pursuant to paragraph (1);

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

• 11 U.S.C. § 523

  (14A) incurred to pay a tax to a governmental unit, other than the United States, that would be nondischargeable → (14) incurred to pay a tax to a governmental unit, other than the United States, that would be nondischargeable

  This change renumbers the existing provisions in the law following the removal of the student loan exception.

Action History

1. February 13, 2020

   Introduced in House

2. February 13, 2020

   Introduced in House

3. February 13, 2020

   Referred to the House Committee on the Judiciary.

4. March 10, 2020

   Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.

Sponsors

• Glenn Grothman · Primary

Subjects