Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law
This answer was rated:

I have 300k in student loans and 60k income. Would this be

I have 300k in student...
I have 300k in student loans and 60k income. Would this be considered undue hardship?
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 2 minutes by:
10/7/2012
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17,253
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Verified

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

if you have very low income or your loans are from a for-profit trade school, you may have a better chance. Courts use the Brunner test to see what is an undue hardship:



The Brunner Test


Under this standard, you can discharge your student loans if you meet all three of these factors:
Poverty. Based upon your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents if you are forced to repay your loans.
Persisitence. Your current financial situation is likely to continue for a significant part of the repayment period.
Good faith. You have made a good faith effort to repay your student loans.

WALLSTREETESQ :

In your situation, if you have children and the loan debt would not allow you to pay for basic life needs it may be possible, however, in most situations, if you are able to make an income, the student loan debt would not be discharged.


 


 

WALLSTREETESQ :

If you were not able to work for example due to a disability, then the student loan payments would be an undue hardship.

WALLSTREETESQ :

if you have very low income or your loans are from a for-profit trade school, you may have a better chance.

WALLSTREETESQ :

What you may have to do, is consider defaulting on the student loans, and let them garnish your pay checks for payments, the garnishment payments may be smaller then your payment plan with them.

WALLSTREETESQ :

In Indiana, wage garnishment is allowed under Indiana Code Title 34, Article 25, Chapter 3: Garnishment, and IC 24-4.5-5-105, and federal law 15 U.S.C. 1673(a). If the judgment-creditor is aware of the debtor’s place of employment, it may seek wage garnishment. Under federal law, the garnishment applies to 25% of the debtor’s net take home pay, (i.e., gross pay less statutorily mandated deductions)

Customer:

How much does the circumstances of the situation weigh in? For instance, I took out student loans knowing that I was going to med school and would be making great money. However half way through school I had family and other financial issues that lead to me failing out. Now I have a Masters degree and only qualify for work as a tech in a lab.

WALLSTREETESQ :

That can be brought up, if you took the debt for school and did not complete the program, then you should request an undue hardship hearing, and be detailed about the circumstances which made you quit medical school, and advise the Court that you did not obtain any benefit from the medical school portion of the loans.


 


Court do also look at all circumstances, it may be possible to have the medical school portion discharged

Customer:

What are the odds though? Should I spend a couple grand and lose or just default?

WALLSTREETESQ :

You need to hire a local attorney it may be worth it if you have children or are married, and you would not be able to pay rent, food, etc., with the student loan payments, if you are single, and have no children that would hurt you.

Customer:

I am married and my wife has student loans as well. Could that be beneficial?


 

WALLSTREETESQ :

Yes, but her income will also be considered.

Customer:

Would I be able to do it alone or would we both have to file?


 

WALLSTREETESQ :

You can file, but her income will still be considered, all household income is considered.

Customer:

I also hear that if all you have is student debt you shouldn't try bankruptcy. Why is this?

WALLSTREETESQ :

Because student debt is not easy to be discharged, most other debts can be discharged in most cases.

Customer:

How often do people succeed when they don't have some type of disability?


 

WALLSTREETESQ :

It is rare less then 5%, also look into the new Income based repayment plan as well.


 


http://www.whitehouse.gov/blog/2012/06/07/income-based-repayment-everything-you-need-know

Customer:

So really I should save the money I would spend on an attorney and put it towards the loan?


 

WALLSTREETESQ :

that may be best at this moment.

Customer:

Thanks for your time

WALLSTREETESQ :

Good luck, and be aware in a few years, the bankruptcy law may change to allow for you to reduce your loans through the Courts.

WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17,253
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Verified
WALLSTREETESQ and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask WALLSTREETESQ Your Own Question
WALLSTREETESQ
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17,253
17,253 Satisfied Customers
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS

WALLSTREETESQ is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
We are a non-profit group...we are behind in our rent, owe
we are a non-profit group...we are behind in our rent, owe sales tax etc...I am considering bankruptcy for the non-profit but need guidance before I make that decision...I would like time to liquidate… read more
Lori
Lori
Juris Doctor
312 satisfied customers
I have income from 100% va disability and ssdi. Are these
I have income from 100% va disability and ssdi. Are these considered income in bankruptcy … read more
ScottyMacEsq
ScottyMacEsq
Doctoral Degree
17,324 satisfied customers
We have only income from veterans disability and state
We have only income from veterans disability and state teachers retirement disability we are being overcome with medical bills that seem to only get worse and worse. Someone said even with the disabil… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,393 satisfied customers
I've been declared disabled by Social Security for almost 2
I've been declared disabled by Social Security for almost 2 years now due to severe depression and anxiety. I'm too depressed to even get out of bed. How do I convince my doctor to sign student loans … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,393 satisfied customers
Can I rent to own a home in Tennessee with chapter 7 and
Can I rent to own a home in Tennessee with chapter 7 and chapter 13 bankruptcy on my credit?… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I'm a disabled veteran needing to file Chapter 7 bankruptcy.
I'm a disabled veteran needing to file Chapter 7 bankruptcy. What is your fee structure? Thank you, ***** ***** … read more
Michael Bradley
Michael Bradley
JD
1,193 satisfied customers
If a debtor is subject to a wage garnishment and the wages
If a debtor is subject to a wage garnishment and the wages are garnished at the employer level, what happens to the non-garnished wages? Can the creditor now just go to the bank and get the 75% of the… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,370 satisfied customers
Capital One is going to garnishment my checking. I have two
Hi Capital One is going to garnishment my checking. I have two business account. one is a sole proprietorship. The other is LLC I was told they couldn't garnish a LLC. I just talk to some one at the b… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,317 satisfied customers
I have a nonperiodic garnishment for a credit card I did not
I have a nonperiodic garnishment for a credit card I did not pay or go to court. My car is paid off but the credit union has never sent me my title free and clear. I get social security disability. Ca… read more
socrateaser
socrateaser
1,031 satisfied customers
I have a lien in my student loan, can they also garnish my
I have a lien in my student loan, can they also garnish my paycheck? How should I deal with the lender?… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,393 satisfied customers
I just received a notification that a creditor is garnishing
hello. I just received a notification that a creditor is garnishing my wages starting next month. I work for the school district. What can I do. Im ready to file bankruptcy if i have to. so 2 question… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,370 satisfied customers
We are in serious debt due to my husband's disability. He
We are in serious debt due to my husband's disability. He filed (in Philadelphia, PA) in May of 2014. His back got infected during a routine disk procedure. He has been unable to work since that time.… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I am filing bankruptcy chapter 8. Only income is disability.
I am filing bankruptcy chapter 8 . Only income is disability. It is no taxable and I was never required to file. My attorney told me I have the file my taxes. Why is that? My account told me I am not … read more
Gerald, Esq
Gerald, Esq
Juris Doctor
3,547 satisfied customers
My daughter is on SS disability. She has money from an IRA
My daughter is on SS disability. She has money from an IRA that we used for nursing home expenses. The remaining amount is in a trust account. She has many creditors. How can I protect her trust money… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,265 satisfied customers
If a judgement creditor in Utah wants to garnish a bank
If a judgement creditor in Utah wants to garnish a bank account does the bank need to be in Utah, or can they garnish a bank account in another state?… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,317 satisfied customers
In the Utah code you sent me it states: 75-7-501 Rights of
In the Utah code you sent me it states: 75-7-501 Rights of beneficiary's creditor or assignee. "To the extent a beneficiary's interest is not protected by a spendthrift provision or Section 25-6-14, t… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,393 satisfied customers
Not really bankrupcy but i have received a garnishment
not really bankrupcy but i have received a garnishment judgement from statefarm ins co, which to my understanding may due to a car loan default and reposession of the vehicle … read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I am retired military and a rated disabled veteran in North
I am retired military and a rated disabled veteran in North Carolina, and a Chapter 13 applicant since 2015. When I completed the means test, the attorney included the Veterans Disability pension into… read more
Maverick
Maverick
Doctoral Degree
6,134 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x