Protections for student loans limiting your ability to discharge student loans in bankruptcy have increased since 1978. Originally you could discharge all student loans until the following events occurred: An amendment in 1978 made student loans dischargeable in bankruptcy after five years of repayment. In 1990 bankruptcy discharges for student loans went to 7 years….
In the 2010 case of Espinosa, the Supreme Court decided perfect notice to a student loan lender was not necessary. In some cases, a student loan can be hardship discharged in bankruptcy without first determining undue hardship in an adversary proceeding. An adversary proceeding is a separate lawsuit filed in your bankruptcy case. These adversary proceedings give the…
The US Department of Education offers a student loan disability hardship due to permanent and total disability. The US Department of Education defines total and permanent disability as the inability to work and earn money because of an injury or illness. The illness or disability must continue indefinitely or result in death. First, to qualify,…
Student loans are generally not dischargeable unless the court grants you a hardship discharge. In Chapter 13 the debt may be challenged as fraudulent or otherwise being unenforceable. Student loans are not enforceable when the school closes prior to the student completing his education or if the debtor didn’t qualify for the loan or school. Student…
Yes, it is hard to bankrupt student loans. In fact, we think that some judges go beyond the standard. Also, federal bankruptcy courts sometimes grant bankruptcy student loan discharges based on section 523(a)(8)’s “undue hardship” standard. However, while some courts allow attorneys and doctors to discharge a student loan, others are harsh. Student Loan Bankruptcy…
You can stop student loan collections and garnishments with bankruptcy. Student loan collections will stop for about 4-6 months with Chapter 7 and either 3 or 5 years with Chapter 13. This article is a handout I give to my bankruptcy clients which explains how to handle your student loans. The idea is to survive…