Legal Question in Bankruptcy in California

Re: Discharge of Student Loan

You don't show undue hardship by amending a petition. You do it by commencing an adversary proceeding (lawsuit) against the student loan agencies and then proving the required elements of undue hardship at trial. Yes, her case can be reopened to do this, or she can also do it in State court, I believe.

Re: Discharge of Student Loan

Under Section 523(a)(8) of the Bankruptcy Code, student loans that are "insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend" are aumotically nondischargeable unless you file a lawsuit to show undue hardship.

You might be able to reopen the bankruptcy and file the necessary legal action (called an adversary proceeding). However, the standard to achieve a "hardship" discharge is very high and you should only do so with the help of a local bankruptcy attorney.

If your friend did not file the adversary proceeding to prove undue hardship, then Citibank is correct when stating that the debt was not discharged.