Figuratively speaking are hard, not impossible, to discharge in bankruptcy. To take action, you need to show that re re re payment of this financial obligation “will impose an undue difficulty on both you and your dependents. ”
Courts use various tests to gauge whether a certain debtor has revealed an undue hardship.
The essential test that is common the Brunner test which calls for a showing that 1) the debtor cannot maintain, predicated on present income and expenses, a “minimal” total well being for the debtor plus the debtor’s dependents if forced to settle the figuratively speaking; 2) extra circumstances occur showing that this situation will probably persist for an important percentage of the payment amount of the figuratively speaking; and 3) the debtor has made good faith efforts to settle the loans. (Brunner v. Continue reading