Student loan debt in this country has surpassed credit card debt and is second only to mortgages as consumer’s largest source of debt.
For many people, the thought of eliminating their student loan debt in bankruptcy has seemed impossible. However, a recent court ruling discharging a borrower’s student loan debt in bankruptcy has given hope that a new precedent will be established.
On January 7, 2020 a New York judge ruled that the $221,385.49 in student loan debt that U.S. Navy veteran Kevin Rosenberg owed for six years was considered a dischargeable debt in his Chapter 7 bankruptcy case.
Now not every case will achieve the same results but it looks better than it once did. Our law firm has been successful in getting rid of student loans in bankruptcies. Clients looking for an attorney that handles student loans in bankruptcies need to know that we do not just file a bankruptcy. We must file a lawsuit inside the Bankruptcy Estate. It is called an Adversary Complaint. This costs additional fees and there are no guarantees.
Bankruptcy courts view student loan debt differently from other types of consumer debt. To discharge student loan debt in bankruptcy, one must meet a standard known as “undue hardship,” which requires the filer prove the following:
- That repayment of the student loan debt is virtually impossible, based upon a “minimal” standard of living;
- That “additional circumstances” will make repaying the student loans just as difficult in the future as it is in the present;
- A good faith effort has been made to repay the student loan debt.
While the standard of undue hardship is difficult to prove, a lawsuit within a bankruptcy case called an adversary proceeding can be filed to establish necessary proof. At the very least, a partial discharge based on the principle of undue hardship can eliminate a portion of a filer’s student loan debt. In some circumstances, the entire student loan debt balance can be canceled or discharged, for example if the filer has suffered a permanent disability.
So many of our clients struggle with their monthly student loan payments. My firm has successfully wiped out more than $200,000.00 in student loan debt for our clients in bankruptcy- and we can do the same for you! Call the Benenati Law Firm today at (407) 777-7777 for a free consultation or fill out the below form to be contacted by one of our experienced student loan debt bankruptcy lawyers. Because Life Has a Reset Button.
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