The plan was to pay the claims but to pay them using one bankruptcy court process, which is more streamlined and has no punitive damages, rather than many separate tort processes.
Imagine a world where natural people could get a new alt identity (SSN and name) on demand and transfer some assets/debt to these identifies. I imagine those with student loans they are unwilling/unable to pay off might do transfer the debt to a freshly minted identity and have the doppelganger take the heat while leaving their core identity with a clean credit record and assets (car and house)
If you had read the case, or even just my comment, you’d see that J&J is not trying to get out of paying. They wrote the “badco” subsidiary a $60+ billion funding guarantee. That was the maximum liability of “oldco.”
This analogy is just terrible. I get people want to go to fancy private schools and then not pay, but that’s no reason to shit up entirely unrelated threads.
Then the loans would be a much higher interest rate loan, and since the incorporated "student" does not have collateral to secure said loan against, i very much doubt that anyone would lend the money in the first place. Unless the gov't puts in a special guarantee to make the lender whole - aka, the current system.
Aka, you cannot bankrupt yourself out of the loan.
The plan was to pay the claims but to pay them using one bankruptcy court process, which is more streamlined and has no punitive damages, rather than many separate tort processes.
How does that translate to student loans?