Attorney Marilyn Hochman recently scored a victory in discharging federal student loans in a bankruptcy case.
The consumer was able to discharge $8,223.49 in federal student loans without opposition by the Department of Education.
Foster, the consumer, was unemployed and had previously filed for Social Security disability but was denied due to “not enough information.”
Marilyn Hochman filed an adversary proceeding as part of the bankruptcy to discharge the student loan debt. She stated:
- Foster could not work due to his medical condition.
- Repaying the student loans would be an extreme hardship.
- Foster can’t maintain a “minimal” standard of living.
- Foster had made good faith efforts to repay his loans before bankruptcy. – Source
While the default judgment was granted due to the Department of Education not objecting to the request, the case does show that even federal student loans made be discharged as part of a bankruptcy action.
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