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It’s been said that it’s impossible for student loans to be discharged, even if an individual files for bankruptcy. Although not technically true, the bar to do so is considerably high. However, there are legal steps a person may take to try to do it.
If someone files for Chapter 7 or Chapter 13 bankruptcy, it is possible to have his student loans discharged. That’s only if a person can prove to the bankruptcy court that repaying his or her loans would cause “undue hardship” to him or any of his dependents. Most courts will use a 3-part test to determine if this undue hardship is met. In order to have his loans discharged, one must meet ALL 3 requirements of the test:
- If the debtor is forced to repay the loan, he or she would not be able to maintain a minimal standard of living.
- There is evidence that this hardship will continue for a significant portion of the loan repayment period.
- He made good-faith efforts to repay the loan before filing bankruptcy (generally the debtor has been in repayment for at least five years).
Creditors are entitled to challenge a person’s discharge request. If his creditors show up to challenge him, the process may be significantly costlier and more time consuming. That’s because each side will have to hire expert witnesses to help prove their cases.
Before seeking to have a loan discharged through bankruptcy, one must consider the extreme difficulty of the task. For example, let’s say someone went to law school but is unable to find steady work as an attorney. Therefore, he takes a job as a waiter making much less than he expected when he first took out the loans. No court will consider him to be in undue hardship. The discharge is really meant for two individuals. The first is one who is unable to work any longer. The other is one who has dependents and will be unable to buy minimal necessities if he must repay the loans.
The good news is that if someone’s loans are discharged successfully, he will not have to repay any portion of them. He will also be eligible to apply for federal student aid in the future.
Adrienne Woods
The Law Offices of Adrienne Woods, P.C.
[email protected]
917.447.4321
By: Marshall G. Reissman
A recent article in the New York Times recently about consumers facing bankruptcy with much more debt than previous debtors. If you are facing this same type of situation, please call us and schedule a free consultation. We want to help you in this time of uncertainty and doubt
By: Marshall G. Reissman
A recent article in the New York Times recently about consumers facing bankruptcy with much more debt than previous debtors. If you are facing this same type of situation, please call us and schedule a free consultation. We want to help you in this time of uncertainty and doubt
The post Consumers Filing Bankruptcy Face Bigger Challenges appeared first on St. Petersburg Law Blog.
By: Marshall G. Reissman
A recent article in the New York Times recently about consumers facing bankruptcy with much more debt than previous debtors. If you are facing this same type of situation, please call us and schedule a free consultation. We want to help you in this time of uncertainty and doubt
The post Consumers Filing Bankruptcy Face Bigger Challenges appeared first on St. Petersburg Law Blog.
Bankruptcy exemptions play a big role during bankruptcy proceedings and they have different effects on each chapter filed. In short, they help you protect property and assets, while helping to keep repayment plan payments affordable. Each state has exemptions at different levels and they are available at the federal level to provide additional protection. If [...]
Seattle area consumers who are now attempting to evaluate whether to keep their homes through either bankruptcy or modification or let the house go and take their chances on the rental market should keep in mind that rents will be rising in the Seattle area.
A recent report shows that apartment rents will rise almost three percent between September and March. In and of itself this would not be so horrible if Seattle rents had not already risen eight percent in the last year alone. When you consider that the average rent for a one-bedroom apartment is already $1802, the evaluation of whether to keep a home or at least put off the foreclosure process becomes even more difficult to wade through.
If you live in the Seattle area and want help evaluating whether to use Chapter 13 Bankruptcy as a tool for either keeping your home of extending your time in it, please call me directly at 206-674-4559 or set an appointment with us at our Seattle Office.
The original post is titled Keep in Mind Rising Seattle Rents When Evaluating Whether to Put off Foreclosure , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
If you are thinking about contacting a bankruptcy attorney you probably have concerns about what to ask. You may be considering bankruptcy if you have been struggling to make payments on debt obligations. Talking with a qualified attorney can be a significant step toward gaining financial control, but at the same time, you want to [...]
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for September 26, 2012 Arts & Minds founder says bankruptcy ‘means nothing’ for school Rhode Island city tries to crowdfund parks after pulling out of bankruptcy Belle Foods bankruptcy auction hopes to ring up high bids
Divorce and bankruptcy commonly go hand in hand. Many people wonder if one should be done before the other. While divorce is a common reason why people file bankruptcy, there are a few areas to review that may help you determine which one to do first and how to do it efficiently to help ease [...]
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
Quality Engineered Installation, Inc. v. Higley S., Inc., 670 So.2d 929 (Fla. 1996) resolved a conflict among the Florida District Courts of Appeal and held that an award of prejudgment interest merges into and becomes part of a single total sum adjudged to be due and owing and as such the amount awarded for prejudgment interest, like all other components of the judgment, automatically bears interest as provided by section 55.03, Florida Statutes. The Florida Third District Court of Appeals, in Westport Recovery Corp. vs. Batista, 32 Fla.L.Weekly D2173 (Fla. 3rd. DCA 2007) applied the Quality Engineered decision and held that a writ of execution on a judgment had not been fully paid as the Sheriff had not collected postjudgment interest due on the awarded prejudgment interest. The Third District Court of Appeal also held that the Quality Engineered decision applies retroactively.Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
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