Congressman Delaney Introduces Student Loan Forgiveness During Bankruptcy Bill

Rep. John K. Delaney (D-Md.) introduced H.R. 449, the "Discharge Student Loans in Bankruptcy Act," to allow student loan debt to be treated like other forms of debt that can be discharged in bankruptcy proceedings, AccountingToday.com reported today.   

According to a study by the Institute for College Access & Success, 69 percent of graduates from the class of 2013 graduated with student loan debt, owing an average of $28,400.

"Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions," said Delaney. "Right now, there is effectively a huge student loan loophole in bankruptcy law that's hurting real people. . . It doesn't make sense for students with heavy debt burdens to be worse than someone with credit card, auto loan debt or mortgage debt."

Body Central Corp. Expected To File Bankruptcy

Bloomberg recently published an article indicating Body Central Corp (BODY), a mall based clothing retailer, is preparing to file bankruptcy within the next week. 

The company lost $70.2 million in the 12 months ending September.  The company sells young women's clothing, and has 265 stores in 28 states.  Body Central is based in Jacksonville, Florida, and received notice of default on $18 million in debt.  The company's stock lost 97% of its value last year.