Student education loans are hard, yet not impossible, to discharge in bankruptcy. To take action, you have to show that re payment of this financial obligation “will impose a hardship that is undue both you and your dependents. ”

Courts make use of various tests to judge whether a certain debtor indicates an undue difficulty.

Probably the most test that is common the Brunner test which takes a showing that 1) the debtor cannot protect, centered on present earnings and expenses, a “minimal” total well being for the debtor additionally the debtor’s dependents if obligated to repay the student loans; 2) extra circumstances exist indicating that this situation probably will continue for an important part of the payment amount of the student education loans; and 3) the debtor has made good faith efforts to settle the loans. (Brunner v. 続きを読む Bankruptcy