Can Student Loans be discharged in CH7 for special circumstances?

[HHM]

I am not sure about the state and federal rules regarding disabilities, but if neither the state or SSA will classify you as disabled, I think you have an uphill battle getting your student loans discharged. I do know there are TWO types of SSA disability benefits, the "insured" benefits which are your standard benefits, but requires you to have worked for so many years and paid into the system, then there are the need-based benefits...it sound like you failed on the needs-based benefits if you were denied because your wife makes too much money. Also, SSA Need based only pays for TOTAL disability.

Also, I have to wonder, you seem fairly lucent, can type on the computer, you went to school (apparently), there probably are jobs that you can do. Thus, I have to wonder about the nature of the disability.

To follow-up on PA Kettle's line of thought, you may be able to try a "financial separation". A financial separation is similar to a divorce, the only difference is, the financial separation does not dissolve the marriage. The procedure for getting a financial separation is very similar to a divorce, you still go to family court, you still have a hearing in front of a family court judge, but it is a legal way for a married couple to separate themselves as legal entities.

[biotechsolution]

tech your chances of getting your student loans discharged are going to be slim to none. you are going to have to pretty much show you won't be able to work again or that you cannot support your family and pay your student loans. Since your wife is working I don't see it happening.
In addition to make your case at the adversary proceeding you attorney is going to have to do some serious research for case law. I would say that to file an adversary proceeding a 'good' attorney is going to charge you at least $5,000 becuase it is going to be a big uphill battle.

[FreshLikeADaisy]

Techno, it's separate from the 341 meeting; it's a special hearing held just to determine the dischargeability of the student loan. I don't know that it's impossible to get them discharged or I wouldn't say try; it may be rare, but people have done it. Just be prepared to demonstrate medical proof of your disability AND its permanency AND its absolute unresolvability AND your complete inability to pay, six ways from Sunday and in triplicate. If you only have the word of one doc, that's not enough; if your problem is resolved by something you cannot do (like take a med that makes you feel horrible but takes care of your bipolar symptoms, for example) that's not enough. It really has to be the end of the road in terms of severity and impossibility of cure, plus the complete inability to pay. HHM's idea of a financial separation sounds great to me, if you can do it.

BTW, I don't know much!!! I have a little knowledge about a lot of things, and I study my ass off when it comes to learning all the facets of something that may affect me, like bk. Beyond that, it's entirely the grace of God.

I honestly don't know what happens when you default on student loans, other than it screws up your credit. For years I've heard story after story about people defaulting but nothing ever really seemed to happen (or maybe they just didn't tell me that part ) so I don't know. It helps that your mother is judgement proof, but as cosigner they could definitely go after her. Maybe someone else could chime in with specific experience on this.

Pa, if Techno doesn't have a problem with looking at a great deal of case law and representing himself, I suppose he could do it, but even then I wouldn't walk in without a legal coach of some sort. This is really, really tricky and it definitely depends more than anything else on how the courts in Techno's district have interpreted the law. I would want someone who knows the court and the judges and is familiar with the subject.

HHM, I myself am temporarily disabled (my symptoms are intermittent but enough to prevent working at this time); if Techno has anything like that I can see him being permanently disabled yet competent in most things, just unable to work. In my case, God willing I will be employable again in a couple months, but there are all kinds of things that make anything but the lightest work truly impossible.

Good luck to you, Techno!!! See if your atty can at least tell you how the judges have ruled in your district regarding hardship discharges of student loans, and if they have *ever* ruled favorably, to his knowledge. If they have, you may have a shot at it too. I wish you well!!!

[technoreid1]

Thanks for all your time and info ..... Sorry for my delayed response as I lost this link/discussion (couldn't find the bookmark)

I hopefully will talk to my atty this week (should have already talked to him about the student loans but have been bogged down with the BK) - have a 341 meeting this friday!!!! pretty scary for myself.....I dont know why?

I get panic attacks along with generalized anxiety disorder....

What if I have a panic attack before or during my 341? (at least my wife will be there).

thanks, techno

Techno, it's separate from the 341 meeting; it's a special hearing held just to determine the dischargeability of the student loan. I don't know that it's impossible to get them discharged or I wouldn't say try; it may be rare, but people have done it. Just be prepared to demonstrate medical proof of your disability AND its permanency AND its absolute unresolvability AND your complete inability to pay, six ways from Sunday and in triplicate. If you only have the word of one doc, that's not enough; if your problem is resolved by something you cannot do (like take a med that makes you feel horrible but takes care of your bipolar symptoms, for example) that's not enough. It really has to be the end of the road in terms of severity and impossibility of cure, plus the complete inability to pay. HHM's idea of a financial separation sounds great to me, if you can do it.

BTW, I don't know much!!! I have a little knowledge about a lot of things, and I study my ass off when it comes to learning all the facets of something that may affect me, like bk. Beyond that, it's entirely the grace of God.

I honestly don't know what happens when you default on student loans, other than it screws up your credit. For years I've heard story after story about people defaulting but nothing ever really seemed to happen (or maybe they just didn't tell me that part ) so I don't know. It helps that your mother is judgement proof, but as cosigner they could definitely go after her. Maybe someone else could chime in with specific experience on this.

Pa, if Techno doesn't have a problem with looking at a great deal of case law and representing himself, I suppose he could do it, but even then I wouldn't walk in without a legal coach of some sort. This is really, really tricky and it definitely depends more than anything else on how the courts in Techno's district have interpreted the law. I would want someone who knows the court and the judges and is familiar with the subject.

HHM, I myself am temporarily disabled (my symptoms are intermittent but enough to prevent working at this time); if Techno has anything like that I can see him being permanently disabled yet competent in most things, just unable to work. In my case, God willing I will be employable again in a couple months, but there are all kinds of things that make anything but the lightest work truly impossible.

Good luck to you, Techno!!! See if your atty can at least tell you how the judges have ruled in your district regarding hardship discharges of student loans, and if they have *ever* ruled favorably, to his knowledge. If they have, you may have a shot at it too. I wish you well!!!

[technoreid1]

Thanks for all your time and info ..... Sorry for my delayed response as I lost this link/discussion (couldn't find the bookmark)

I agree with you on the uphill battle...

We are barely getting by right now and I cannot work - and this is WITHOUT paying my student loans....just don't know what to do about my student loans.....


thanks, techno

I am not sure about the state and federal rules regarding disabilities, but if neither the state or SSA will classify you as disabled, I think you have an uphill battle getting your student loans discharged. I do know there are TWO types of SSA disability benefits, the "insured" benefits which are your standard benefits, but requires you to have worked for so many years and paid into the system, then there are the need-based benefits...it sound like you failed on the needs-based benefits if you were denied because your wife makes too much money. Also, SSA Need based only pays for TOTAL disability.

Also, I have to wonder, you seem fairly lucent, can type on the computer, you went to school (apparently), there probably are jobs that you can do. Thus, I have to wonder about the nature of the disability.

To follow-up on PA Kettle's line of thought, you may be able to try a "financial separation". A financial separation is similar to a divorce, the only difference is, the financial separation does not dissolve the marriage. The procedure for getting a financial separation is very similar to a divorce, you still go to family court, you still have a hearing in front of a family court judge, but it is a legal way for a married couple to separate themselves as legal entities.