What are my chances of Ch 7 student loan discharge? Advice needed


B

B.M.T.

Hi:

I'd like to get opinions regarding my chances of getting my student
loans discharged in Ch 7 under an undue hardship, adv. proceeding.

The facts are:

Age 38, single with no dependents and no known medical problems.

Income has not exceeded $13,000 per year since 1998

Loans defaulted in 1998/1999. Payments were made for 2/3 years prior
to default. Deferments/consolidation requested and given.

Total student loan debt approx. $160,000.00

I have no assets and no motor vehicle. I work as a writer and computer
sales from home.

My rent is $500/ mo. plus utilities and I have no health insurance.

I have a BA and a graduate degree, however, I took the state licensing
exam three times (1996,1997 and 1998) and failed to pass on all
attempts. Since I am unlicensed, I have worked in other low paying
fields, such a writing, sales, advertising, etc.

I am in the 3rd Circuit where the three prong Brunner/Faish test
applies. My argument for discharge is:

a.If Plaintiff is forced to repay the student loans, Plaintiff would
not be able to maintain a minimal standard of living;

b.Evidence is present that this hardship has existed and will continue
to exist for a significant portion of the loan repayment period.
Plaintiff is not state licensed after three unsuccessful examination
attempts. Plaintiff has no hope of finding employment in his
profession due to lack of license. Plaintiff's job prospects are
limited to low level, low paying jobs, which are aggravated by the
effects of the weak economy and difficult job market;

c.Plaintiff made, when able, student loan payments years before filing
bankruptcy. Plaintiff also obtained a loan consolidation and exhausted
deferments.

Any advice or comments would be appreciated. Thanks in advance.
 
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L

Lost-In-Translation

IMHO, you're screwed. GSL don't let go for any reason if they absolutely
don't have to. Expect a challenge.
 
C

Charles Strickland

Age 38, single with no dependents and no known medical problems.

Income has not exceeded $13,000 per year since 1998

Why don't you have your loans consolidated into a direct consolidation loan?
With your income, your income contingent payment would be about $60/mo.
 
L

Lost-In-Translation

Charles Strickland said:
Why don't you have your loans consolidated into a direct consolidation loan?
With your income, your income contingent payment would be about $60/mo.
And with a loan balance of 160,000.00 those payments would be for the rest
of one's life and then some!
 
C

Charles Strickland

Lost-In-Translation said:
of one's life and then some!
The loan is forgiven after twenty-five years of repayment. It's a
ridiculously good deal.
 
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B

Bubba

Hi:

I'd like to get opinions regarding my chances of getting my student
loans discharged in Ch 7 under an undue hardship, adv. proceeding.
I'll tell you my experience for what it's worth.

I had student loans dating back to 1977, and because of an undiagnosed
disability I was unable to maintain gainful employment. I was hounded
for years, and then in 1991 I was forced into bankruptcy.

I went to an attorney who told me that I had to have an additional
hearing (higher fees) because of the student loans.

I went to another attorney who just listed them on my petition, and
they were discharged without comment.

I didn't receive a status of "legally disabled" until 1996.

Maybe the laws have changed since 1991, though.
 
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