Debt Articles Student Loan Bankruptcy Discharge

Another Example of Student Loans Discharged in Bankruptcy

Written by Steve Rhode

I’ve been writing more about bankruptcy cases that have resulted in student loan discharges, see here.

And in doing some more research I came across another case from 2012. In the Northern District of Georgia a consumer was able to get the following loans discharged:

Oakland Community College – $754.80
Texas Guarantee Student Loan – $48,135
U.S. Department of Education – $48,994
Walden University – $655
Wayne County Community College – $837
Wayne State University – $3,355
TOTAL – $102,730.80

in the adversary proceeding filed by attorney Patricia McKenzie the debtor, Udoroh, incurred these loans to pay for room and board, textbooks and other expenses at Wayne County Community College, Marygove College, Rochester College, Oral Roberts University, Wayne State University, Oakland County Community College, and Walden University.

Udoroh was said to be currently homeless and “without a full discharge, Debtor is likely unable to return to full functionality in society in that she is neither likely to find employment nor likely able to afford shelter and transportation.” – Source

What is interesting is there was no mention of the debtor making a good faith effort to repay but that is most likely due to the fact the Debtor “has no current or anticipated income or resources with which to pay the aforementioned loans and any payments on those loans could only be made at great hardship.”

The court awarded a judgment in favor of the consumer because the Defendants in this case, the student loan lenders, failed to object to it. – Source


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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