1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

adversary Proceeding Personal Bankruptcy

Discussion in 'Bankruptcy Law' started by Johnson5961, Mar 31, 2015.

  1. Johnson5961

    Johnson5961 Law Topic Starter New Member

    Messages:
    1
    Likes Received:
    0
    Trophy Points:
    0
    My wife and I filed our bankruptcy Pro Se and then filed an Adversary Proceeding for our student loans. However, my wife did not sign the Adversary Proceeding complaint. We both have student loans we are filing on. Did she need to sign the complaint for it to be valid for all the loans in the Adversary Proceeding or was just one sufficient since we filed jointly? If both signatures are needed, what do we need to do in order to correct it?
     
  2. disagreeable

    disagreeable Well-Known Member

    Messages:
    2,739
    Likes Received:
    223
    Trophy Points:
    63
    Very rarely can student loans be discharged in bankruptcy. Just because they are noncollectable now does not mean they will always be, unless you are permanently disabled. You must meet the Brunner Test.

    The Brunner Test

    In most states, student loan borrowers must prove undue hardship by meeting all three prongs on the Brunner test. These three elements are:

    Cannot maintain a minimal standard of living. If forced to repay the student loan, the borrower cannot maintain, based on current income and expenses, a minimal standard of living for his or her family. If you have federal student loans, the court will consider your eligibility for repayment plans —which are quite generous for low-income borrowers—in calculating the true cost of repayment. (For more information on federal loan repayment plan, see the articles in our Options for Repaying Student Loans topic area.)

    Borrowers of private student loans do not qualify for the federal repayment programs, which means they have fewer repayment options and often have an easier time proving this element.

    Situation will continue. This situation is likely to continue for most of the repayment period.

    Good faith effort to repay. The borrower made a good faith effort to repay the loans. Again, for federal loan borrowers, the borrower’s use of available federal repayment plans is taken into account in assessing “good faith.” Private loan borrowers will have an easier time proving this element because they do not have access to generous repayment plans.
     
  3. Proserpina

    Proserpina Moderator

    Messages:
    5,377
    Likes Received:
    500
    Trophy Points:
    0

    And it's harder to discharge student loans than it is to discharge taxes. And that's hard enough in and of itself.
     

Share This Page