Sentences with phrase «hardship discharge»

Admittedly, I've held this old assumption as well and have said for years that an undue hardship discharge is not possible for many.

Section 3 (b) says, «By July 1, 2015, the Secretary of Education shall issue information highlighting factors the courts have used in their determination of undue hardship, to assist parties who must determine whether to contest an undue hardship discharge in bankruptcy of a Federal student loan.»

There is more information in this 2015 Department summary of the undue hardship discharge of student loans.

Borrowers are extremely unlikely to successfully obtain an undue hardship discharge in part because Congress never defined what it meant by an undue hardship, leading to arbitrary and unpredictable bankruptcy court decisions.

There is also a provision for a hardship discharge and you may convert your chapter 13 to a chapter 7 at any time.

• Most consumer debtors, particularly those most in need of a discharge, can not afford the litigation costs needed to bring a hardship discharge adversary proceeding.»

Determine whether you qualify for a hardship discharge, or manage defaulted student loans by establishing a payment plan that you can afford.

Generally, a hardship discharge is available only to a debtor whose failure to complete plan payments is due to circumstances beyond the debtor's control and through no fault of the debtor.

The court may grant a «hardship discharge» to a chapter 12 debtor even though the debtor has failed to complete plan payments.

The hardship discharge does not apply to any debts that are nondischargeable in a chapter 7 case.

For example, injury or illness that precludes employment sufficient to fund even a modified plan may serve as the basis for a hardship discharge.

Even though ECMC pushed the need or opportunity for Conniff to enroll in an income driven repayment plan, Courts have ruled that is not required for an undue hardship discharge.

Student Loan 523 (a)(8) Discharge, Undue Hardship, Bankruptcy Law Information, Chapter 7 Bankruptcy, Adversary Proceeding, Undue Hardship Discharge, Bankrupt your student loan, Bankruptcy Code: 11 U.S.C. § 523 (a)(8), Student Loan Crisis, Legislation and Laws About Student Loans, U.S. Department of Education and Student Loans, How to File Bankruptcy and Eliminate Your Student Loans, Income Repayment Plans, Disability and Student Loans, TPD, Student Loan Forgiveness

Court cases addressing the question of «undue hardship» (also know as a «hardship discharge») tend to look at whether the debtor has the capability to make enough money to cover the student loan payments and other debts, reserving a finding that a debtor has met the second part of the Brunner test for circumstances involving severe physical injury or other forms of disability.

Student Loans and Bankruptcy, Part 2 — What Is an «Undue Hardship or Hardship Discharge»?

Even if you satisfy the requirements of an undue hardship discharge, often this will result in just a partial discharge of the debt.

However, according to a recent publication in the American Bankruptcy Law Journal, nearly 40 percent of bankruptcy cases who requested it was granted a hardship discharge.

Professor Iuliano has also demonstrated in a prior paper that even student loans covered by the bankruptcy discharge exception can still be discharged based on showing «undue hardship,» and that courts are far more likely to approve undue hardship discharges than many debtors (and lawyers) may realize.

[xx] However, in 2007, bankruptcy courts granted a full or partial discharge to nearly forty percent of the 0.1 percent of the debtors who sought a hardship discharge.

OK, so perhaps you've read the Brunner test and still think that you have a shot at a hardship discharge.

Although courts tend to interpret the Brunner test strictly, whether you qualify for a hardship discharge will ultimately be a function of the individual facts and circumstances of your case as well as the attitudes toward student loan debt that are prevalent in your jurisdiction.

Restore the Bankruptcy Fresh Start for Student Loan Borrowers The Truth About Student Loans and the Undue Hardship Discharge

Instead, the only way to completely discharge student loan debt today is via a mechanism called a «hardship discharge», which is almost impossible to qualify for.

A hardship discharge also is available in chapter 12 if the failure to complete plan payments is due to «circumstances for which the debtor should not justly be held accountable.»

Although a chapter 13 debtor generally receives a discharge only after completing all payments required by the court - approved (i.e., «confirmed») repayment plan, there are some limited circumstances under which the debtor may request the court to grant a «hardship discharge» even though the debtor has failed to complete plan payments.

The scope of a chapter 13 «hardship discharge» is similar to that in a chapter 7 case with regard to the types of debts that are excepted from the discharge.

However, if your income is insufficient to both repay the debt using income - based repayment and provide for a minimal standard of living (e.g., you are living below 150 % of the poverty line), this situation is expected to persist for most of the term of the loan and you made a good faith effort to repay the debt, you may be able to get an undue hardship discharge.