Phoenix, AZ asked in Bankruptcy for Arizona

Q: can federal student loan debt be included in a bankruptcy?

Related Topics:
1 Lawyer Answer
Leonard Sominsky
Leonard Sominsky
  • Bankruptcy Lawyer
  • Phoenix, AZ
  • Licensed in Arizona

A: Generally, since the 2005 Bankruptcy Reforms, both federal and private student loans are presumed to be nondischargeable in bankruptcy unless there is an 'undue hardship.' This term is not defined by the code, and it has been left to the Courts all over the country to decide case by case what is undue hardship in your specific situation. A separate motion needs to be filed in the pending bankruptcy case to challenge the loan and force a evidenciary hearing where hardship can be determined. The courts have not been kind to debtors and have adopted a narrow view of undue hardship, therefore the vast majority of student loans are not discharged in bankruptcy. You should get a free consultation with an experienced bankruptcy attorney to discuss this very important and complicated issue.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.