I also think people need to study what debt relief is, what forms it takes, and why the student loan bit is SUCH a mess. wikipedia has a nice article, basic, but nice.
and this is taken from the article:
and here's a bit about that act.In US tax law, debt forgiven is treated as income, as it reduces a liability, increasing the taxpayer's net worth. In the context of the bursting of the United States housing bubble, the Mortgage Forgiveness Debt Relief Act of 2007 provides that debt forgiven on a primary residence is not treated as income, for debts forgiven in the 3-year period 2007–2009. The Emergency Economic Stabilization Act of 2008 extended this by 3 years to the 6-year period 2007–2012.
In bankruptcy and foreclosure, debt often is and can be forgiven between creditors and private citizens.
Heck, I would be happy if student loans were able to be managed via bankruptcy. That alone would make me happy. I'm no where near filing for it, but I can imagine that many people are. And if they could get that debt restructured or forgiven, then heck yeah, let it happen.
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