U.S. Department of Education Seeks to Define “Undue Hardship” Regarding the Discharge of scholar Loan Debt in Bankruptcy

U.S. Department of Education Seeks to Define “Undue Hardship” Regarding the Discharge of scholar Loan Debt in Bankruptcy

Presently, the U.S. Bankruptcy Code provides that student education loans can simply be discharged in bankruptcy if excepting your debt from release would impose a “undue hardship” in the debtor while the borrower’s dependents. Nevertheless the Code does not provide a meaning or test for determining hardship that is undue. It’s left to bankruptcy courts to choose hardship that is undue education loan borrowers. Which will quickly alter. (more…)