Due to recent changes the process of applying for relief from student loan debt in bankruptcy has become much easier. Previously debtors had to have this decided by having a lengthy motion in front of the Judge. Now the debtor can apply by filling out a form that is sent to the Department of Justice which then makes a recommendation to the Court. This new process will apply to all “DOE-held” federal loans. A student loan can be discharged in bankruptcy in certain circumstances. Generally, a student loan will not be discharged in bankruptcy unless the borrower can demonstrate that […]
