Petition for undue harship

[Bobbi]

anyone have a clue where to get a blank form, or example of this? I need to file it with my papers this week, and , i am clueless!

[FreshLikeADaisy]

Are you talking about a waiver of the filing fee? If so, it's at the uscourts.gov website:

http://www.uscourts.gov/bkforms/bankruptcy_forms.html

Look for Form 3B, Application for Waiver of Chapter 7 Filing Fee (12/07). Hope this helps!

[Bobbi]

no, the one i need is to file a petition for student loans in bankruptcy i can't find it to save my life!

[HHM]

That is an entirely different issue.

There is no "form" you fill out for discharge of student loans for undue hardship. If that is what you want to do, realize, you will be initiating an adversarial proceeding in BK court, which is like a mini civil suit. Basically, you have to prove to the BK court (at trial) that your students loans should be discharge because there is NO WAY you can EVER pay them back. Short of having a disability that prevents you from earning an income, getting a hardship discharge is very very unlikely.

[Bobbi]

That is an entirely different issue.

There is no "form" you fill out for discharge of student loans for undue hardship. If that is what you want to do, realize, you will be initiating an adversarial proceeding in BK court, which is like a mini civil suit. Basically, you have to prove to the BK court (at trial) that your students loans should be discharge because there is NO WAY you can EVER pay them back. Short of having a disability that prevents you from earning an income, getting a hardship discharge is very very unlikely.

per social security, i have a permanent disibiltiy, that is expected to kill me before i get better. basically, i went from pursung my masters, making 60k a year, to nada. now i get social security and that is all i live on. there is no way with four kids i can ever pay those back and not cause problems for my children, and their basic needs.

so, i figured they would be dischargable under those circumstances.?

[no_it_all]

To be considered for the hardship exemption for repayment, you must file a separate motion with the bankruptcy court. You must then explain your hardship to the judge. In general, hardship may be granted only if:

1. You can prove that making your student loan payments would cause you to fall below a minimum standard of living.
2. You can show that your financial difficulties will be long-term with little hope of improvement.
3. You have made an effort in the past to repay your student loans.

In actuality, this exemption hardly ever is granted unless you have a physical condition that does not enable you to work, and if there is no chance that you will be able to find sufficient employment in the future. Good luck!

[Bobbi]

Is there a standard form to follow or do I just type up a motion, and include the supporting documentation.? Thanks so much for your reply

To be considered for the hardship exemption for repayment, you must file a separate motion with the bankruptcy court. You must then explain your hardship to the judge. In general, hardship may be granted only if:

1. You can prove that making your student loan payments would cause you to fall below a minimum standard of living.
2. You can show that your financial difficulties will be long-term with little hope of improvement.
3. You have made an effort in the past to repay your student loans.

In actuality, this exemption hardly ever is granted unless you have a physical condition that does not enable you to work, and if there is no chance that you will be able to find sufficient employment in the future. Good luck!

[Catia]

Bobbi, I'm interested in attempting to get my student loans discharged as well when I do file BK.
I have MS, but not on social security yet. I do not know what state you are in or which kinds of loans you have, but PHEAA has a toll free #, and I think they will mail you forms that a doc must sign if you are applying for a total disability release of your debt. This form has nothing to do with BK though, it is a form your doc must sign, and PHEAA reviews it and gives determinations, so if you have PHEAA loan, you may have 2 avenues to attempt.
It is true most student loans never get discharged--BUT--you have proof and documentation of a disability if on social security disability, which is one of the criteria they demand in order to do so. Please PM me or post and let me know your experience so far, and as it goes, cuz I will be doing the same thing.
My suggestion would be to have some sort of statement from your doc when you go to court stating your inability to work, amd that it is life long.
Make copies and keep your original.
This statement will come in handy for many other things you may need as well, not just BK related--you obviously know already how it goes with the red tape of SSD/SSI. Statement will also come in handy if you need a handicap parking spot, if you do not already have one.
Good luck and keep us posted

[Bobbi]

Bobbi, I'm interested in attempting to get my student loans discharged as well when I do file BK.
I have MS, but not on social security yet. I do not know what state you are in or which kinds of loans you have, but PHEAA has a toll free #, and I think they will mail you forms that a doc must sign if you are applying for a total disability release of your debt. This form has nothing to do with BK though, it is a form your doc must sign, and PHEAA reviews it and gives determinations, so if you have PHEAA loan, you may have 2 avenues to attempt.
It is true most student loans never get discharged--BUT--you have proof and documentation of a disability if on social security disability, which is one of the criteria they demand in order to do so. Please PM me or post and let me know your experience so far, and as it goes, cuz I will be doing the same thing.
My suggestion would be to have some sort of statement from your doc when you go to court stating your inability to work, amd that it is life long.
Make copies and keep your original.
This statement will come in handy for many other things you may need as well, not just BK related--you obviously know already how it goes with the red tape of SSD/SSI. Statement will also come in handy if you need a handicap parking spot, if you do not already have one.
Good luck and keep us posted

hey there,

first off, i am so sorry about your ms. I have SLE(lupus) and a condition known as systemic vasculitis. The thing is, I have four forms of the vasculitis, which is very rare. My social security was approved last year in a mere 3 months, and i am in my 20's. That is virtually unheard of. My doctors gave me 9 months, last December, and I actually improved, instead of getting worse. I went thru chemo, agressive steroids, and more, and now my bones are damaged. So, I basically, took the lesser of two evils to stay alive

If, for some reason, I don't get them discharged, or I can't get the permanent disibility, worst thing that will happen, is I will forbear and defer the hell out of them, until I am out of options. Then I will pay a max of $9-10 a month till I die(literally). I just want them gone so they are not affecting my debt to income and my beacon, so we can eventually buy a house and get things in order, since i have kids to take care of.

I think you will encounter the same, if they won't discharge, you can put them off a long time.

What sucks with me, is that I finished my BBA in Business and Finance, and got 6 months shy of my Masters in Business before I fell ill. Now, my degree and my education mean squat, because according the the docs, I will never get to use it....and now, I have to pay back tons of $$$ in loans on a mere $1370 a month in SSD.

IT blows, to say the least, lol

Feel free to PM me anytime!

[Catia]

(((Bobbi))), stay strong--fact is, the defining criteria you explained IS what they are looking for when it comes to a permanent disability forgiveness/release of your debt-due to disability causing undue hardship-at least as far as PHEAA is concerned. Again, I do not know which type of loans you have, but I AM familiar with PHEAA's criteria, as I have spoken to PHEAA about this in detail. For Pheaa, you do not have to go through BK with the loan if you can provide them with the proper info and documentation. I once had the exact form--it's 1 piece of paper, back and front, permanent hardship forgiveness I think--which your doctor signs that begins the entire process. I do believe they have a 'look back period' or something similar--meaning, if they forgive the loan, it is conditional (or atleast was at the time)and IF you end up working a great job soon after, they can re-instate it somehow-And well, that is understandable, it protects them from fraudulant discharges. I however, do not know how TRUE that statement to me actually was, because I searched for info that backed up what the PHEAA rep told me, and found none, and it was not listed on the document they sent to me--but I remember her saying something about 5 years? It could've been a scare tactic, I don't know for sure, it is a govt affiliate after all lol!
I did not fill it out however, because I went into remission (regressing/remitting MS), and I was too scared to file it, cuz whenever I feel OK enough, I go back to work immediately, and even though at that point it was just waiting tables, it was income/work, and I didn't want the govt crawling up my a** with a fine toothed comb screaming "fraud". So, I do the forbearance/ temporary hardship deferrment to hell and back. You obviously already know that drill!!! This is the same reason I am not on SSI/SSD--I want to work whenever I am able, it makes me feel like a normal/productive human being again, even if it is just waiting tables, and they have so damn many criteria if you return to the work force, and it can cause problems keeping your benefits, or getting them again, the fear of loosing my freedom to work when I am able has caused me NOT to file for those benefits. Hence, I am now in a situation where I may well go into foreclosure and BK. I may have chosen differently if I had children, but I do not, so the only person this affects is me.
I can tell you this, you must have an incredibly strong spirit to have come so far with the Lupus--that's not just 'luck' ya know!!!

I am assuming, again, just an assumption, that other federally backed student loans have some similar type of process. If it's any consolation, IF you are able to get these 'forgiven/released' before you go into BK, that may save additional $$ you have to pay to your attorney, you do meet specific criteria and have definate documentation, I believe it may just be a matter of a shuffling papers back and forth for your student loans, and that may not be so bad, certainly no worse that the paper shuffling you have to do for ssi/ssd, and it is worth a try for you to get started on it before BK, if for nothing else, but to save you some additional stress and $$. From what I heard, some atty's don't even want to deal at all with student loan debt when it comes to BK cuz they know how slim the chance of a discharge is--but your situation is different, you do meet criteria.
If you want to post the types of student loans, I can look and see if I can find out what the docs are specifically called, and perhaps dig for some toll free #'s for which dept you need etc.

[Bobbi]

I have some with the William Ford system, that I consolidated, they are subsidized and unsub'd. I have another set with ACS, which are the same. All are federal pell grants.

I never did anything private, and the only ones left total $15,000

[Catia]

Bobbi, sorry--I am confused--you said all your loans are federal pell grants-???-grants do not have to be paid back--under most circumstances--was this just a mistake/typo?
Did you mean all loans are federally backed/insured? or were they once grants that were converted to loans due to some type of breach of contract? Just need some clarification.

[Catia]

Bobbi, here is what I believe is the standard form for discharging your student loan outside of BK, this is for the type of loan you have (wm. ford)--try this link, lemmee know if it works. Again, if you can get this started now, all the better.
You may, when calling your student loan servicer's toll free # be met with quite a large amount of resistance when trying to get this form. You may also be told there is no such thing. The student loan servicer's are often unaware of such forms due to rarity, and the fact that the servicer is just that, a servicer, they are trying to collect a debt...they are the collection agency for those loans, often times they are not educated on special rare cirumstancial situations. Also, the servicer is not the lender.
The name of the form is a "Total and Permanent Disability Discharge Application".
Like I said, I've been down this avenue, I have had one on hand, but for PHEAA. They do exist, and if your circumstances are as you stated, you should be elligible. When you file, while you are awaiting decisions, you may place your loan into forbearance/deferrment etc, lessening some of the financial strain. I do not know however, how long it takes them to follow through on these, like anything, they do have an obligation to do such, and keep you informend. MAKE COPIES OF EVERYTHING, ask what addresses you can mail it either certified/receipted mail--just to cover your own butt--incase they "lose" it.

http://www.ed.gov/offices/OSFAP/DCS/forms/disable.pdf

[Bobbi]

Bobbi, sorry--I am confused--you said all your loans are federal pell grants-???-grants do not have to be paid back--under most circumstances--was this just a mistake/typo?
Did you mean all loans are federally backed/insured? or were they once grants that were converted to loans due to some type of breach of contract? Just need some clarification.

I am so slow sometimes, lol. No, the loans are federally backed, and the reason it is only the 15,000 is because the rest was grants, which, no , i don't have to pay back. I am such a dip when i type.....

Bobbi, here is what I believe is the standard form for discharging your student loan outside of BK, this is for the type of loan you have (wm. ford)--try this link, lemmee know if it works. Again, if you can get this started now, all the better.
You may, when calling your student loan servicer's toll free # be met with quite a large amount of resistance when trying to get this form. You may also be told there is no such thing. The student loan servicer's are often unaware of such forms due to rarity, and the fact that the servicer is just that, a servicer, they are trying to collect a debt...they are the collection agency for those loans, often times they are not educated on special rare cirumstancial situations. Also, the servicer is not the lender.
The name of the form is a "Total and Permanent Disability Discharge Application".
Like I said, I've been down this avenue, I have had one on hand, but for PHEAA. They do exist, and if your circumstances are as you stated, you should be elligible. When you file, while you are awaiting decisions, you may place your loan into forbearance/deferrment etc, lessening some of the financial strain. I do not know however, how long it takes them to follow through on these, like anything, they do have an obligation to do such, and keep you informend. MAKE COPIES OF EVERYTHING, ask what addresses you can mail it either certified/receipted mail--just to cover your own butt--incase they "lose" it.

http://www.ed.gov/offices/OSFAP/DCS/forms/disable.pdf

i will look at this now~!!! thx!!!!!!!!! u r awesome!