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Dischargeability
• S. 256 § 310;
Credit Card Debts The
presumption of nondischargeability for fraud in the use of
a credit card, set out in § 523(a)(2)(C), is expanded.
The amount that the debtor must charge for “luxury goods”
to invoke the presumption is reduced from $1225 to $500; the
amount that the debtor must withdraw in cash advances in order
to invoke the presumption is reduced from $1225 to $750. The
period of time prior to the bankruptcy filing in which these
charges must be made in order for the presumption to apply
is increased from 60 to 90 days for luxury goods, and from
60 to 70 days for cash advances.
• S. 256 § 220;
Student Loans
Section 523(a)(8) is amended to make student loans nondischargeable,
in the absence of undue hardship, regardless of the nature
of the lender, thus covering loans from non-governmental and
profit-making organizations.
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