Sarah Sharer Curley, the first woman appointed to the U.S. Bankruptcy Court for the District of Arizona, has published a book examining the American bankruptcy system and its treatment of indebted individuals. In an interview this month, Curley discussed how borrowers often face insurmountable financial obstacles despite working and attempting to manage their obligations.
Personal bankruptcy filings reached more than half a million cases in 2025, representing a roughly 50% increase from three years prior, according to the Administrative Office of the U.S. Courts. Curley noted that people who file for bankruptcy often work but earn insufficient wages or lack stable employment. Many work as independent contractors with minimal benefits or juggle multiple jobs to meet basic needs. She observed that contrary to common assumptions, bankruptcy filers typically are not attempting fraud but rather are responding to unexpected hardships such as job loss, chronic illness, natural disasters, or accumulating educational debt.
Curley recalled presiding over a case involving a 73-year-old woman carrying over $584,000 in student loan debt from the 1970s. Despite decades of public service work with troubled youth in San Diego County and living solely on Social Security income, the woman faced significant obstacles to debt relief. Curley credited her seven years of qualified public service work, which reduced the remaining repayment period from ten years to three, but noted strict bankruptcy laws generally prevent student loan discharge.
Under President Joe Biden’s administration, efforts were made to facilitate debt discharge and establish modified repayment plans for struggling borrowers. Following the restructuring of the Education Department in 2025, however, far fewer employees remained to process these modifications, making settlements substantially more difficult to reach. Curley characterized Trump’s “big beautiful bill” that passed in July 2025 as an attack on student loan borrowers, pointing to unrealistic federal loan caps that force students toward private loans with substantially higher interest rates. She projected that these policy changes would likely drive additional bankruptcy filings as borrowers face unsustainable monthly obligations.
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