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Consolidating student loans bankruptcy

consolidating student loans bankruptcy-39

Importantly, "courts should base their estimation of a debtor's prospects on specific articulable facts, not unfounded optimism," and the inquiry into future circumstances should be limited to the foreseeable future, at most over the term of the loan.The end result of this case, a full elimination of the student loan debt.

The Court said, "The reality is that even if the Debtors' gross income were $60,000 per annum, providing for a family of five would be a Herculean task." Even using the common Bruner Test to determine undue hardship discharge eligibility, Judge Berger said, "Within an historical context, the Brunner framework is an unfortunate relic." And the Judge made the observation, "Considering a significant shift of the skyrocketing costs of college education to the middle class over the last three decades, it is disconsonant with public policy and bankruptcy's fresh start to leave debtors in virtual lifetime servitude to student loans.Some of these strategies apply to private student loans, federal student loans, or both.Just recently the Department of Education provided a handy chart about undue hardship court guidance.Based on their income history and increasing costs of their family, this state of affairs is likely to persist for a significant portion of the Loan's repayment period." This case is interesting because of the spousal consolidation loan.It's not the typical type of loan you see being discharged in bankruptcy.Judge Berger said, "Debtors' expenses seem unreasonably low, and any significant reduction in their living expenses would most likely be offset by future expenses.

This Court agrees with Judge Karlin who, in In re Quarles, observed that even where a car might soon be paid off, "to completely deduct that payment from the Debtor's monthly expenses ignores the fact that the nine year old car will almost certainly need to be replaced at some point in the near future." In addition, as cars grow older, "there will likely be an increase in maintenance costs for the aging car until it is replaced." As noted supra, because Debtors' projected monthly expenses for car payments, for maintenance, and for gasoline are unrealistically low, an increase in Debtors' monthly expenditures is appropriate.

George attended Labette Community College in Parsons, Kansas, from August 1992 through 1994 and obtained an associate's degree.

He then continued his education at the University of St.

The original amount borrowed by George was $25,000 and by Melanie was $20,000; these loans were incurred during the 1990s.

George Johnson is approximately 38 years old and his wife, Melanie Johnson, is approximately 36 years old. All of their parents are alive." "Melanie Johnson obtained loans while attending the University of California-Davis from 1994 through 1999.

Thanks to some amazing readers and tipsters I've just received a collection of cases where the consumer managed to have their student loans eliminated in bankruptcy, right now, today.