Q: Looking for information on student loan insolvency
A:
Here's some basic information on student loans and Bankruptcy. My firm, Amann Burnett, PLLC, handles creditor and debtor side representation concerning student loans.
11 U.S.C. § 523(a)(8) excepts from discharge a student loan if requiring repayment "would impose an undue hardship on the debtor and the debtor’s dependents." The term "undue hardship" is not defined in the Bankruptcy Code. The first widely accepted case dealing the question of undue hardship in the context of a student loan discharge was the infamous case of Brunner v. New York State Higher Education Services, 831 F.2d 395 (2d Cir.1987). The so called "Brunner Test" asks three things. Each prong of the test must be met:
1. Can the debtor maintain, based on current income and expenses, a “minimal” standard of living for herself and her dependents if forced to repay the loans;
2. Are there additional circumstances indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and
3. Has the debtor has made good faith efforts to repay the loans.
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.
