QUESTION

How do I provide proof to my university's financial aid department that I am not discharging my student loans in my bankruptcy case?

Asked on Dec 21st, 2012 on Bankruptcy - Mississippi
More details to this question:
I am a student, and I have recently filed for bankruptcy without a lawyer. I have no desire to discharge my student loans. However, to receive my financial aid for next semester, my university is asking for documentation that I'm not discharging the loans I already have. When I asked what sort of documentation they need, they told me my lawyer should know. When I told them I didn't use a lawyer, they weren't sure what to suggest. My trustee told me to contact the court, and the court clerk said this was the first time she'd ever encountered this sort of question. I'm at a loss.
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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The reason you're having such a difficult time finding proof that you are not discharging your student loans is that there is no such thing.  Your university's financial aid department is asking you for something that doesn't exist.  You also can't provide proof to them that you didn't sue them or that King Tut is still alive. If they insist on something, provide them a copy of 11 U.S.C. 523(a)(8) which sets forth the exception to discharge of debts for student loans, and states the requirement that "undue hardship" be proven.   That particular subsection is not self-executing--in other words, you must bring a complaint determining the debt to be discharged (after proving undue hardship) in order for the student loans to be discharged.  Otherwise, they will not be discharged. While you're at it, you might want to have them read 11 U.S.C.525(c) which prohibits discrimination by a government unit in providing a grant or loan to someone merely because they filed a bankruptcy case.  I'm not sure if the financial aid you're seeking falls into that category, or if they are a non-government institution, but you might want to have a bankruptcy lawyer in your area look at this more closely if they deny you the financial aid. Good luck. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  CONTACT MARK for more information or to schedule an appointment.   
Answered on Dec 22nd, 2012 at 8:39 PM

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