20 5 月 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 just only be released in bankruptcy if excepting your debt from release would impose a “undue difficulty” in the debtor additionally the borrower’s dependents. However the Code does not provide a meaning or test for determining hardship that is undue. It’s left to bankruptcy courts to determine hardship that is undue education loan borrowers. That will quickly alter. Earlier in the day this current year, the U.S. Department of Education issued an ask for general general general public touch upon assessing hardship that is undue, expressing concern that borrowers can be “inadvertently frustrated from filing an adversary proceeding within their bankruptcy situation.