Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2026

This bill changes a section of the federal bankruptcy code about legal costs and attorney's fees. Under current law, a court can order a creditor to pay a debtor's legal costs and attorney's fees in certain disputes over whether a consumer debt can be wiped out, if the creditor's position was not substantially justified. The bill would extend this rule to cases where a debtor asks the court to cancel a student loan debt because repaying it would cause undue hardship. The change would take effect when the bill becomes law and would apply only to bankruptcy cases filed on or after that date.

Full text and official record on Congress.gov

Sponsors

• Shri Thanedar Democrat sponsor
• 0 cosponsors