Posted on
July 2, 2009
at
9:26 pm
Hi everyone. just wanted to ask, Can bankruptcy cover student loans? I'm not entirely sure abt this and i wanted to make sure if my student loan can be discharged or not. thanks for all the help
Posted on
July 2, 2009
at
10:59 pm
Student loan debt cannot be discharged in bankruptcy, unless you're able to prove that you are suffering from "undue hardship."
Posted on
July 3, 2009
at
12:56 am
what exactly is undue hardship, and how can i prove that?
Posted on
July 3, 2009
at
1:23 am
One form of undue hardship would be a disability discharge. According to the Sallie Mae website, it's typically difficult to prove that an individual is going thru undue hardship, unless they were "physically unable to work." In order for your student loan to be discharged in bankruptcy, it's necessary to file a separate motion with the bankruptcy couirt and present it before a judge.
Posted on
July 3, 2009
at
2:09 am
Different courts use different gauges to evaluate whether or not a borrow has suffered undue hardship. One type of test is the "Brunner test," which will inevitably prove that: - the debtor cannot keep up with a minimal standard of living based on their current income and expenses, and paying for the student loan will prove to be detrimental to their situation;- certain evidence will also prove that this particular state of affairs will persist for a significant period of time- the debtor has shown good faith in making payments in the pastKeep in mind that not all courts use this test, and that some courts are actually more flexible.
Posted on
July 3, 2009
at
2:55 am
can you tell me how to discharge my student loan in bankruptcy? i know it's possible, i really hope they approve for it, but i just want to know the proper procedure for that.....
Posted on
July 3, 2009
at
3:07 am
Odessa,You need to file a petition (also known as an adversary proceeding) in order to get a determination of undue hardship. However if you have already filed for bankruptcy but were unable to request for a determination of undue hardship, you can reopen your bankruptcy case any time. There should be no additional fee in re-opening your case. If the court doesn't grant the odds in your favor, you can also consider repaying your student loan thru a Chapter 13 bankruptcy.
Posted on
July 3, 2009
at
3:24 am
Just so you know~ a number of courts have granted a discharge when it was found out that the school was fraudulent or the borrower did not benefit from the school that they were studying in.
