Student Loan Discharge Expert in Ogden, Utah

Many people believe that it is impossible to get rid of student loans in bankruptcy. It may be difficult, but it is not impossible.

Our team at Godfrey Law has helped many Utah clients get a discharge on student loans in chapter 7 and 13 bankruptcy cases.

A Student Loan Discharge applies in catastrophic cases which include death, total and permanent disability, bankruptcy, school closure, fraud, disaster situations and severe physical and mental impairments.

Student Loans can be discharged In Bankruptcy when:

• You file a bankruptcy or reopen an old bankruptcy
• You establish that repayment of student loans would cause undue hardship
• You file a complaint against a student loan creditor

The discharge of student loans is allowed under the Bankruptcy Code Section 11 U.S.C. 523 (a)(8) for both Chapters 7 and 13 Bankruptcies. This section states that student loans are non-dischargeable unless repayment of the loans would result in “undue hardship” for the debtor.

There is no definition of undue hardship in the Bankruptcy Code, so bankruptcy courts are tasked to establish whether it exists in a particular case.

In Utah, student loans are discharged if you meet the required elements found in a test called the “Bruner Test.”

The 3 elements that you need to establish in the Bruner Test are:

• The debtor can’t maintain a minimal standard of living
• Situations present during the time of filing are likely to persist
• The debtor has made an effort to repay the student loans in good faith