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Bankruptcy -
Educated debtor not suffering from medical condition impacting on ability to
work was not entitled to discharge of student loan debt.
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A Chapter 7
debtor whose household income for his family of three was more than double
the federal poverty level, whose $135,115.92 in student loan debt was
eligible for repayment under an income-based repayment (IBR) program under
which his current monthly payment would be just $154.19 per month, an amount
less than what the debtor's wife voluntarily contributed to her retirement
plan, and who, while applying for various jobs in the scientific field that
was his area of expertise, presented little evidence of his efforts to
maximize his income by searching for work outside his chosen field, failed to
satisfy even the first, or "minimal standard of living," prong of
the Brunner test for obtaining an "undue hardship" discharge of his
student loan debt. The first prong of the Brunner "undue hardship"
test for the discharge of student loan debt, i.e., the "minimal standard
of living" prong, requires more than a showing of tight finances.
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Saturday, March 1, 2014
Dischargeability of Student Loans in Bankruptcy
