Five Crazy Things Student Loan Lenders Say To Keep Debtors Under Their Thumbs: Part 2

Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “What is Chapter 7 Bankruptcy?”

Given how hard it is to get out from under student loan debt, it comes as no surprise that less than 1,000 people try this nearly impossible feat every year. The Wall Street Journal recently ran an interesting piece on the subject that detailed five examples of outrageous demands made by lawyers for lenders (including the U.S. Department of Education) to explain to judges why student loan debt should not be forgiven. We intend to go through all five of the crazy explanations, with the second one appearing below.


Peace Sign Charlotte Bankruptcy Lawyer North Carolina Student Loan AttorneyAnother crazy example of the lengths that some lenders will go to prevent a person from bankrupting on student loan debt occurred in Montana. In that 2006 case, the man filed for bankruptcy on his $130,000 in loans.


The man was a graduate from Yale University with a Master’s degree; however, his measly wage at a small town sheriff’s office was nowhere near sufficient to cover his debt burden. His bankruptcy filing explained that he had no real hope of paying down his six-figure educational debt with his $12.41 wage.


Rather than agree that paying off so much debt on such a small income would be impossible, the lenders went on the attack, accusing the money of wasting precious money on medications. Specifically, the lawyers questioned his use of antidepressants, something the man had been prescribed for mental health issues. The questioning was intense and meant to highlight how the man had frittered away money on apparently unnecessary antidepressants.

Unconvinced, the bankruptcy judge wrote that he was disturbed by the line of questioning, referring to it as an “apparent attack” on the man’s medication use. Not content to allow the issue to lie, the lenders again went on the attack again, harshly criticizing the man for failing to drive 800 miles to a “nearby” South Dakota Indian reservation where he would be able to purchase his medications at a discount.


Thankfully the judge in the case was unswayed by the lenders’ arguments. The judge took special exception with the lenders’ suggestion that the man use vacation time to make the monthly journeys to the Indian reservations to stock up on medication. The bankruptcy court eventually granted the discharge, relieving the Yale grad of $130,000 in debt.

If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.



“Things Student Loan Lawyers Ask Borrowers Who File For Bankruptcy,” by Katy Stech, published at


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Five Crazy Things Student Loan Lenders Say To Keep Debtors Under Their Thumbs: Part 1