In her new book, Sarah Sharer Curley reflects on her experiences as a bankruptcy judge, highlighting the struggles of individuals burdened by student loans and medical debt. She recounts a poignant case of a 73-year-old woman with over $584,000 in student loans, emphasizing the challenges posed by strict bankruptcy laws that often prevent debt discharge.
Curley notes that many bankruptcy filers are not fraudulent but are victims of unforeseen circumstances, such as job loss or chronic illness. Despite claims of rising wages, she points out that many workers are living paycheck to paycheck, often juggling multiple jobs without adequate benefits.
Curley criticizes the 2025 changes to student loan policies, which she believes have made it harder for borrowers to negotiate debt relief, potentially leading to more bankruptcy cases. She also highlights the emotional toll of bankruptcy, where individuals often feel a sense of moral failure for their financial struggles.
Curley calls for a reevaluation of the legal system to provide fairer treatment for individuals facing insurmountable debt, contrasting the leniency often afforded to large financial institutions