QUESTION
How can I put Undue Hardship to my Chapter 7 Bankruptcy that has been discharged since 2007?
Asked on Dec 16th, 2013 on Bankruptcy - Colorado
More details to this question:
I filed my bankruptcy in 2007 and it was discharged as well. However, I attested this year as to why my consolidation loans were not discharged. As a result, I was told that an "Undue Hardship" on my bankruptcy. What do I need to do to add the "Undue Hardship" to my bankruptcy? Also, I also plan on filing it this week of 12/16 - 20/2013 in order to have the case hearing on the January 22, 2014.
4 ANSWERS
Richard hirsh
Your question is not quite clear however I assume you are talking about educational loans that were not discharged in your 2007 chapter 7. that is the normal outcome. Education loans are dischargeable only upon a showing of "undue hardship" which should have been undertaken as a adversary proceeding in your chapter 7 case. It might be possible to reopen you chapter 7 and file an adversary proceeding however the court may not allow the case to be reopened for that purpose due to the passage of time.
Answered on Dec 23rd, 2013 at 9:57 AM
Your question makes no sense. There is nothing special about a consolidation loan that would require you to obtain an "undue hardship" order. Are you listening to your creditors for legal advice? This may be a violation of the bankruptcy discharge which is actionable and could put some money in your pocket if you are represented by a competent bankruptcy litigation attorney.
Answered on Dec 19th, 2013 at 11:52 PM
Deborah F. Bowinski
Your question is confusing. Are you referring to student loan debt? The only way student loans are discharged in bankruptcy is after an adversary proceeding (a lawsuit inside the bankruptcy case) is filed and litigated in which you can prove that being required to pay the debt is an undue hardship. These are very difficult trials and in most jurisdictions they are unsuccessful even with experienced counsel. You must prove that you will remain unable to repay because of a severe, continuing disability or terminal illness, or something sillier that not only prevents you from earning adequate income now, but also will prevent you from earning adequate income for the rest of your life. This is not something to attempt without a lawyer.
Answered on Dec 19th, 2013 at 11:51 PM
1 Award
When a person is seeking to discharge student loans in a bankruptcy, that person must file a lawsuit (adversary proceeding) within that bankruptcy. The person must prove that repaying the student loan would cause an undue hardship on himself and his dependents. In order to prove this, a person must generally prove that he has made good faith efforts to pay on the loans, that he can not maintain a minimal standard of living at this time while paying on the loans, and that it will be unlikely in the future that he will have sufficient income to pay on the loans. A person can reopen an old bankruptcy to pursue an undue hardship discharge of the student loans. It is a full-blown lawsuit and a person needs to be prepared for a fight by the student loan company.
Answered on Dec 19th, 2013 at 11:51 PM