Section 523(a)(8) of the Bankruptcy Code states that student loans are not dischargeable in bankruptcy. In 2000, the Second Circuit Court of Appeals held that unpaid tuition does not constitute a student loan. In a recently released case, Bankruptcy Judge Carl L. Bucki of Buffalo ruled that changes in the bankruptcy code in 2005 did not alter the results of the earlier Second Circuit case.
Four years ago, I reported that bankruptcy lawsuits (known as 'adversary proceedings' or 'APs') in the Rochester Bankruptcy Court in 2010 were down by one third from the previous year. The average number of APs filed 2007 to 2010 in Rochester was 113 per year (not including clusters of APs related to one particular complicated chapter 11 case). In 2010 the number dropped to 67.