Under today’s bankruptcy laws, it’s very difficult to receive a discharge of student loan debt. While some lawsuits and proposed laws might signal a change in the way student loans are handled in individual consumer bankruptcy cases in the future, they are currently almost always excepted from discharge. In order to have a student loan debt discharged in your bankruptcy case, you need to be able to prove facts substantiating “undue hardship.” This means you’re facing severe difficulties, both financial and otherwise, that make it impossible or highly impracticable to repay your entire student loan. If you believe you are facing undue hardship or if you plan to use bankruptcy for other kinds of debt relief in Pipestone, MN, Behm Law Group, Ltd. can provide expert attorney legal services to support you every step of the way.
Along with the recent McDaniels v. Navient case and the proposed Covid-19 Student Loan Relief Act of 2020, there have been several recent bankruptcy cases that resulted in large portions of student loan debts being discharged. Over the past two to three years, Mis Loe, Katy Adams, Kevin Rosenberg, and Jamie Mudd all used bankruptcy to effectively discharge significant student loan debts.
Mis Loe: Californian Mis Loe received a 98% discharge of her student loans that had accrued to over $350,000 in 2021. Loe faced health issues after starting her undergraduate degree in 1992, and her income halted with the 2020 pandemic. Her student loans had accumulated to $356,637.82. With an adversary proceeding in her Chapter 7 case, she was finally able to find debt relief from those loans.
Katy Adams of Texas found relief from her $41,509 in student loan debts. Adams worked as a public servant for over 20 years, but personal events forced her to leave that career. With several lower-income jobs making her incapable of making loan payments larger than the monthly minimum payments, Adams filed for Chapter 7 in 2019 to totally resolve the student loan debts.
U.S. Navy veteran, Kevin Rosenberg, owed six figures in student loans for over 15 years. In 2020, the New York Bankruptcy Court granted the discharge of his $221,385.49 worth of student loan debts. Rosenberg was an attorney, but after realizing that a law career wasn’t his calling, he left to become an entrepreneur with relative success. However, the recession and some personal issues caused an irreversible and significant drop in his income, leading to the increase of his student loans.
Nebraskan Jamie Mudd had almost $90,000 in student loan debt discharged in her bankruptcy case in 2019 with an adversary proceeding. After earning two Associate degrees and working multiple retail jobs, Mudd had also begun caring for her developmentally-challenged grandson. Because of these circumstances, she was unable to materially reduce her student loan debts which had amassed to $89,525.38.
These are just some examples of discharged student loan debts through bankruptcy. To learn more about finding debt relief in Pipestone, MN with bankruptcy, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatel:%20(610)%20431-3553tobankruptcy.com.