WebOct 18, 2024 · Student Loan Debt in Bankruptcy. One objective of filing Chapter 7 or Chapter 13 bankruptcy is obtaining a discharge of consumer debts. However, certain debts are non-dischargeable, and student loans are often among them. The sole exception is when a debtor can prove that repaying the students loans would cause an undue hardship. WebDec 5, 2024 · During the application for a student loan discharge under undue hardship, it is advised to continue making payments towards your loans. If you qualify for undue hardship, you will have several missed payments that will affect your credit history and thereby affect your credibility as a borrower. The Additional Step: Filing An Adversary Proceeding
New Process to Discharge Student Loans in Bankruptcy
WebNov 17, 2024 · Unlike credit card, medical and other consumer debts, student loan borrowers must show that paying off the debt would cause them “undue hardship.” … WebApr 11, 2024 · Bankruptcy Judge Christopher M. Klein decried the “widespread belief that student loans are virtually impossible to discharge in bankruptcy.”. In his April 5 opinion, … phish alpine 2013
Chapter 7 Undue Hardship and Student Loans
WebApr 10, 2024 · Assuming the loans at issue are covered by the exception to discharge under 11 U.S.C. § 523(a)(8), a debtor must then demonstrate that being forced to repay the student loans would constitute an undue hardship. Since “undue hardship” is not defined anywhere in the Bankruptcy Code, the task of interpreting what actually constitutes an undue ... WebFeb 7, 2024 · To prove undue hardship for student loan bankruptcy filings, you must first understand how courts determine this. How to Prove Undue Hardship for Student Loans … WebSep 16, 2024 · It isn't enough to prove that making student loan payments now would cause undue financial hardship. You must be able to show that your financial situation is unlikely to change for the majority of the life of the loan. Tax returns showing that your income hasn't changed much over the past 10 years could be used to demonstrate this. [8] phish alpharetta ga