Legal Question in Bankruptcy in Minnesota

Forgiveness of Student Loan through Bankruptcy

My adult daughter age 35 who suffers from chronic mental illness and whose income has been reduced to Social Security disability must file bankruptcy because she can no longer hold a job to earn enough to live on and pay off her debts, one of which is student loans. Under Minnesota bankruptcy can these be included in her debts submitted for bankruptcy protection.

Thank you.


Asked on 2/24/00, 4:54 pm

1 Answer from Attorneys
E. Brian Davis Davis Law Office

Re: Forgiveness of Student Loan through Bankruptcy

Until late 1998, student loans which had been in

payment status for a certain period of time were

dischargeable in bankruptcy without any additional

information or proof. However, in late 1998 (can't

recall exact date), Congress changed the law, so

now student loans are dischargeable only if they

constitute an undue burden.

To discharge a student loan now, the debtor must

file an "adversary proceeding" in the bankruptcy

case, asking the bankruptcy court to rule that the

student loan is an undue burden. The student loan

creditor has an opportunity to argue against the

discharge. The cases are generally difficult and

I strongly urge you and your daughter to consult

with experienced bankruptcy counsel in your area.

Read more
Answered on 3/07/00, 6:02 pm


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