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Richard, Attorney
Category: Legal
Satisfied Customers: 55452
Experience:  Attorney with 29 years of experience.
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I co-signed 2 studen loans for my daughter[colegiate trust]

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I co-signed 2 studen loans for my daughter[colegiate trust] and have 3 or 4 credit cards that have outstanding balances. My house was recently sold short sale.I am considering filing BK. I am not sure that I want to use the attorney I used to file last year.I withdrew that petition becuase I was negotating [with help] to try and get a loan mod.on the house that was just sold.I have been toldthat the student loans may not be exempt if I re-file
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. It's difficult, but not impossible to get student loans discharged in bankruptcy....either as the student or a co-signer. What you must prove is "undue hardship." If you can prove "undue hardship, then your liability will be discharged. Different courts use different tests regarding "undue hardship." The most common test is the Brunner test. Under this test, "undue hardship" is found if: 1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the student loans; 2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and 3) the debtor has made good faith efforts to repay the loans. This test was based on the following court case: (Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987). In the interim, your bankruptcy filing will automatically protect you from collection actions on all of your debts until the bankruptcy case is resolved or until the court releases a creditor to restart the collection process.

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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!

Thank you also for the generous bonus! I appreciate your kindness!
Customer: replied 4 years ago.

how do I start can you recomend some-one to help hired a BK attorney last year he never mentioned the possibility of discharging the loans

Hi there and thanks for following up. Under my terms of service with JustAnswer, I'm not allowed to make a specific recommendation, but I can give you direction. You would want to either contact the state bar association or your nearest law school for a referral. I prefer the latter because they take great pride in their graduates and will take a more personal interest in making sure your referral is a good one because it will be a reflection of the school.