Legal Question in Bankruptcy in California

Can a student loan be discharged in a personal bankruptcy in CA? He's drowning in debt. His work hours were cut, so his income is retarded. He supports himself and his mother and she only works part time. He called the loan company, explained everything and was told that he is already on a hardship and they will not lower his payments. He's desperate and sees no way out except bankruptcy. But he was told by friends that you can't discharge student loans. Is this accurate? Where can you get legal aid or pro bono bankruptcy attorneys in CA? Thank you so much


Asked on 6/30/11, 2:26 pm

2 Answer from Attorneys
Asaph Abrams Law Office of Asaph Abrams

The short answer is no. The 11 USC �523(a)(8) hardship exception to nondischargeability of student loans is notoriously narrow. Lower income is not sufficient by itself. After all, most graduates depart campus with zero income. For more information on bankruptcy and whether you qualify for the hardship exception contact counsel in your area; even if you do not qualify for discharge of student loans, eliminating other liabilities may faciliate their repayment. Chapter 13 bankruptcy may be beneficial in redistributing payment of student loans (however, one gets credit only for what's paid on them).

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Answered on 6/30/11, 3:34 pm


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