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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2862
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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how can i declare bankruptcy against student loans?

This answer was rated:

how can i declare bankruptcy against student loans?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Generally student loans and educational debts are not dischargeable in bankruptcy

Terry L. :

There is a loophole, but it's very small

Terry L. :

You need to file an adversary inside of your bankruptcy to determine if they will be discharged.

Terry L. :

to do so, you have to prove that you paid them in the past.

Terry L. :

You have no present ability to pay them anything

Terry L. :

You have no future ability to pay them anything

Terry L. :

You must meet all 3 prongs

Terry L. :

The 3rd is the hardest

Terry L. :

If you are working, and can afford to pay them, say $20mo then you won't succeed.

Customer:

I have not made any payments. I am in default on some of them attempting a consolidation. The others I am in a period of forbearance.

Terry L. :

I've seen a few cases, and they all have debtors who are real ly broke. Usually permanent disability preventing them from working again.

Customer:

I have no ability to pay them and don't see any future ability to pay them

Terry L. :

Are you employable?

Customer:

Repayment would cause an "undue hardship"

Terry L. :

that's not the test though

Terry L. :

are you employable?

Terry L. :

lack of a job is different than unemployable.

Customer:

I have a medically fragile child who requires round the clock care. I had to quit my job because I exhausted all my FMLA time caring for him

Terry L. :

I see.

Terry L. :

That would help support the case.

Terry L. :

To meet prong 1, you should pay them something for a while

Terry L. :

Even if just a little bit

Terry L. :

The test is called In Re Brunner.

Customer:

If I pay on them, then I can't pay my necessities such as housing, utilities, and phone

Terry L. :

You can google it and your state to see what the judges have saiid in your district

Customer:

I tried and I found nothing

Terry L. :

If you don't pay, you won't satify the first prong

Terry L. :

Did you google 'in RE Brunner" student Loans bankruptcy and the name of your state?

Customer:

no

Terry L. :

that will get you the right cases

Terry L. :

You should also use an attorney in AZ to assist you,snnce the burden of proof is so high

Terry L. :

Any other questions?

Customer:

looks like they are being discharged in most cases

Customer:

I need to know what forms to file

Terry L. :

keep in mind 99% of the student loans are not dischargable, since debtors don't bring the adversaries since the burden is so

Terry L. :

Your attorney can assist you with what forms are needed

Terry L. :

You can also get the forms from your bankruptcy court website

Terry L. :

They have links to the required forms

Terry L. :

Bad service?

Terry L. :

I don't understand why you rated bad service.

Terry L. :

What other questions do you have?

Customer:

Because if I had an attorney or could afford one, I wouldn't be on here

Terry L. :

I understand, I just recommend one.

Terry L. :

The US Dept of Ed. will come at you hard to fight the dischargeablitlty, they do on every adversary

Terry L. :

What other questions do you have?

Terry L. :

Please reconsider your rating. This site does not provide free legal advice, but is for informational purposes only. I can answer any other questions you have.

Terry L. :

I have provided you the case law to review to prepare a case, I have given you the standard test the judge uses to review these matters and what you have to prove.

Terry L. :

I have told you where to get the court forms to file your case.

Terry L. :

What other questions do you have?

Terry L. :

Hello?

Terry L. :

It seems you have stepped out. Please respond with any further questions you have about the process and I'll get you an answer. Otherwise, please click accept to close out the question. Thanks

Terry L. :

Good luck to you , you might have a shot

Terry L. :

Thanks

Terry L. :

Terry

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