Legal Question in Bankruptcy in California

Student Loan in Chapter 7 Bankruptcy

I have an old student loan from 1992 and listed it in my bankruptcy in which I received my discharge in May 2005. Last week I received a letter from the student loan fund saying that the debt wasn't dischargeable and that I have to pay the loan. Isn't this loan dischargeable since it is older than 7 years old?


Asked on 7/19/05, 1:12 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Student Loan in Chapter 7 Bankruptcy

No. In a Chapter 7, student loans are automatically non-dischargeable in the absence of "undue hardship" as defined in the Bankruptcy Code. Discharging student loans in Chapter 7 is very difficult and requires filing an adversary proceeding against the creditor so you can try to prove your case of "undue hardship". You should consult with a local bankruptcy attorney with experience in this type of proceeding.

You MIGHT be able to discharge the student loan in a Chapter 13 repayment plan, which is yet another reason to seek competent help from a local bankruptcy attorney.

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Answered on 7/19/05, 1:25 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Student Loan in Chapter 7 Bankruptcy

The law changed a while back to make student loans non-dischargeable except where you can prove undue hardship, which is difficult.

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Answered on 7/19/05, 2:02 pm


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