The news is full of stories and statistics regarding our country’s overwhelming amount of student loan debt. Most people are also aware that student loan debt is rarely discharged in a Chapter 7 or Chapter 13 filing. Section 523(a)(8) of the Bankruptcy Code provides that student loans cannot be discharged unless repaying them would be an “undue hardship” on the debtor or the debtor’s dependents. A piece of good news is that there is no time limitation for seeking the discharge of student loans in bankruptcy. This means if your financial situation changes over the course of time, you can still seek to discharge the debt.
The undue hardship standard is strictly applied by the court. Undue hardship can be described to mean that it is not reasonable to expect that the debtor could ever repay the student loan. Many courts believe that some hardship should be expected when repaying the student loan. Thus, typically only extreme cases constitute undue hardship.
However, in a recent appeal before the U.S. 9th Circuit Court of Appeals, Michael Hedlund has given hope to students drowning in student loan debt. Mr. Hedlund was able to discharge $58,000 of his $85,000 student loan debt. Hedlund’s case may be important to you because he was a middle-wage earner, not an individual in extreme poverty.
If you have overwhelming student loan debt, don’t assume that you cannot discharge your loans. Confer with an experienced bankruptcy attorney like Heidi Miller at DeLadurantey Law Offices, LLC to explore your options for seeking the discharge of your onerous student loans. Ms. Miller is a graduate of the Student Loan Lawyer workshop. She is only one of four attorneys in the state of Wisconsin who have completed this workshop and she stands ready to assist you.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handles bankruptcy matters for the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC can be contacted by phone at (414) 377-0518.