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Are personal figuratively speaking Dischargeable in Denver, Colorado within a Chapter 13 Bankruptcy Case?

Are personal figuratively speaking Dischargeable in Denver, Colorado within a Chapter 13 Bankruptcy Case?

Not often, but that trend may be changing. As a Denver bankruptcy lawyer, I’m sure exactly how hard it may be to navigate education loan repayment/forgiveness options.

In 2005, Congress passed the Bankruptcy Abuse Prevention and customer Protection Act which managed to get harder to discharge federal or student that is private in bankruptcy. However, in case a customer can be “undue hardship, ” their figuratively speaking could be released in an adversarial proceeding. An adversarial proceeding is comparable to a split law suit which can be linked to a bankruptcy instance, whilst still being heard by exactly the same Bankruptcy Judge since the instances are associated.

Generally speaking, to show undue harship, customers want to pass the Brunner test that has been utilized during a case back 1987.