Student loan debt is often difficult to get discharged by the Houston bankruptcy court. There are so many factors involved that even if you did not satisfy all of the criteria in your original bankruptcy case you may become eligible for discharge years later based on events such as unemployment, reduced income, or disability.

Fortunately, if your facts and circumstances change over the years since your Chapter 7 discharge your Woodlands Bankruptcy Attorney can file additional adversary proceedings to continue to pursue discharge without going through an entirely new bankruptcy provided the student loans existed at the time your previous bankruptcy petition was filed. If you have student loans that you received after your last bankruptcy petition was filed then they would not be eligible to be included in this special procedure.

Call The Shea Law Firm at (832) 592-7913 if you need an experienced bankruptcy lawyer.

Student loans are a booming industry. The government guarantees the loan so schools everywhere saw a wonderful opportunity to raise tuition to the sky. And since it is not easy to discharge a student loan in bankruptcy lenders were almost always standing by ready to lend unsuspecting students large sums of money on a degree that may not be worth the price paid. What can you do if you are being buried by student loans?

It is not easy to get a student loan discharged in bankruptcy. Not easy at all, but it can be done under very specific conditions. It all comes down to the judge’s definition of “undue hardship.”

“Undue Hardship” is the legal standard used in the Bankruptcy Code to determine if a student loan should be discharged in a bankruptcy proceeding. However, Congress never defined what they meant by “undue hardship” so each judge has been left to create their own definition. Almost everyone agrees that an undue hardship is something more than regular hardship, but there are differences of opinion to how onerous the hardship must be.

Most courts have relied on the Brunner test in evaluating undue hardship. Under the Brunner test you may prevail on an undue hardship claim if: Read more…