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Is Student Loan Debt Now Dischargeable Through Bankruptcy?

Is Student Loan Debt Now Dischargeable Through Bankruptcy?

History ended up being made earlier in the day this thirty days whenever a brand new York judge ruled that US Navy veteran Kevin Rosenberg’s $221,385.49 student loan financial obligation stability is dischargeable under Chapter 7 bankruptcy.

Ahead of the ruling, trying to dismiss education loan debt through bankruptcy had been extremely hard, if you don’t completely impossible. Unlike other forms of personal debt, which may be erased after filing for bankruptcy, education loan financial obligation could be the only kind considered ineligible for dismissal unless particular appropriate requirements are pleased.

Because the United States Department of Education’s Federal scholar Aid workplace describes, “You might have your federal education loan released in bankruptcy just if you file a different action, referred to as an ‘adversary proceeding, ’ requesting the bankruptcy court discover that payment would impose undue difficulty for you as well as your dependents.