Section 523(a)(8) of the Bankruptcy Code makes student loan debt non-dischargeable unless debtor sues the student loan company and convinces a bankruptcy judge that repayment of the student loan debt would cause debtor an undue hardship. If ever there were more loaded words than “undue hardship”, I am not sure what they would be.
The curse of student loan debt has reached record highs after millions of Americans saddled with untold amounts of student loan debt whose repayment of which is precarious at best. I remember speaking to a masseuse whose student loan debt reach $80,000.00. No offense to any masseuse’s out there but $80,000.00 to be a masseuse? Come on.
Unfortunately, Congress, beholden to the corporate donors, have not made discharging student loan debt easy. To appease their corporate donors, Congress made debtors, debtors who do not have the resources to fight against large corporations, make the first move toward any possibility at discharging student loan debt. Debtors must first bring an action against the student loan company challenging whether student loans she be discharged in bankruptcy court. Facing paying a lawyer $5,000.00 up front just to start the proceeding, who can do this not knowing if the result will bear fruit?
Such is the landscape today. As a gross over-generalization, if you are older and sicker, chances of discharging a student loan debt are greater. If you are younger and healthier, good luck. Our advice to debtors who have student loan debt is to tread lightly in this arena. Discharging unsecured debt in a Chapter 7 Bankruptcy is essentially guaranteed result whereas discharging student loan debts hangs on the whims of the court or other government bureaucrats. Do not hold your breath.
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When the time is right, or when you are ready, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.
