Legal Question in Bankruptcy in California

Student Loan Discharge
Can a student loan be discharged due to 1) undue hardship 2)lapse of the 7 year rule 'or' 3) submission of the loan cost under a third party's bankruptcy given their fault as to his injury and a nominal settlement which included the bankruptcy despite no admission of fault--given the following?:In 1991 A Law Student is injured in a shooting temporarily diagnosed quadripilegic recovers to have partial paralysis and degenerative scoliosis, sufficient to trigger permanent disability status and accomodations from the State Bar. But not able to pass the bar or use his degree due to the dibilitation. He graduates in 1995 experiences relapse and surgery in 1994 and 2000 due to the same problem. He works in insurance and has never used his law degree. He is married and he and his wife generate $3000 month and they have over $4500 in expenses including the student loan which has increased 3 fold in 5 years despite his good faith repayment. They have a home and one child. The wife has been on welfare and has bouts of depression due to the financial predicament. She earns minimum wage.

Asked on 10/07/02, 12:28 pm

3 Answers from Attorneys

Mark Markus Law Office of Mark J. Markus

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Re: Student Loan Discharge

The only one of your 3 choices would be undue hardship, and it sounds like you have a pretty good argument for it. For more information on student loan dischargeability, please visit my webpage at http://www.bklaw.com/chapter7doc.htm and if you would like a free phone consult, please visit http://www.bklaw.com/consult.html and after you have gathered all the necessary information and completed the forms, give me a call or e-mail to schedule a time.

Regards,

Mark

Answered on 10/07/02, 12:40 pm

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Robert Miller Robert L. Miller & Associates, A Law Corporation

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Re: Student Loan Discharge

Because the law changed in 1998, student loan discharge is much harder to obtain, and the 7 year rule no longer applies.

However, because you have a disability, and disability is one of the stated exceptions, you may have a good chance to obtain a hardship discharge of your student loans.

I am happy to answer more questions or help in any way that I can. Please feel free to email me or call my office, toll free, at 1-877-568-2977.

Answered on 10/07/02, 6:26 pm

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