BILL NUMBER: AJR 11	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 6, 2013

   Relative to the dischargeability of private student loan debt.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 11, as introduced, Wieckowski. Bankruptcy.
   This measure would urge the President and Congress of the United
States to support and pass legislation that would ease the
dischargeability of private student loan debt in a bankruptcy case
filed under Chapter 7 or Chapter 13 of the Bankruptcy Code.
   Fiscal committee: no.



   WHEREAS, Existing federal law excepts from discharge in a
bankruptcy case filed under Chapter 7 or Chapter 13 of the Bankruptcy
Code specified educational loans made, or secured, by a lender other
than the federal government, also known as private student loans,
unless the debtor convinces a bankruptcy court that repayment would
be an undue hardship on the debtor and the debtor's dependents, a
sometimes difficult and expensive process not required to discharge
other unsecured nonpriority debt; and
   WHEREAS, Californians should have the same ability to discharge
their private student loan debt as they do to discharge their
unsecured nonpriority debt; and
   WHEREAS, Californians who are not given relief from their burden
of private student loan debt, even after a successful completion of a
bankruptcy case, are seriously hindered from establishing their
personal economic stability and contributing to the economic growth
of the state; and
   WHEREAS, The inability of Californians to more easily discharge
private student loan debt prevents them from gaining the "fresh start"
that a successful bankruptcy case is intended to provide; now,
therefore, be it
   Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature urges the President and the
Congress of the United States to support and pass legislation that
would allow private student loan debt to be dischargeable in a
bankruptcy case filed under Chapter 7 or Chapter 13 of the Bankruptcy
Code similar to the dischargeability of unsecured nonpriority debt;
and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, the Speaker of the House of Representatives, the Minority
Leader of the House of Representatives, the Majority Leader of the
United States Senate, the Minority Leader of the United States
Senate, and to each Senator and Representative from California in the
Congress of the United States.