Crestview, Fla. - A recent court case has made an unprecedented decision to discharge student loan debt. The ruling was made in New York in which the judge found the debtor satisfied “undue hardship”, a standard in the Bankruptcy Code. Lewis and Jurnovoy, a Crestview personal bankruptcy attorney, is highlighting this recent ruling.
Typically, student loans are not dischargeable when filing for bankruptcy. In the recent case, the debtor Kevin Jared Rosenberg had over $220,000.00 in student debt at the time the case was filed. Rosenberg filed a case where he declared his student loan debt dischargeable under section 523(a)(8) of the Bankruptcy Code.
This section of the code exempts student loan debt unless there is an “undue hardship”. Mr. Rosenberg made his case and a decision was made on January 27, 2020, granting the student loan debt dischargeable. During this case, the ‘Brunner’ standard was used to test the debt along with other previous student loan cases.
The recent ruling sets a new precedent in the field of bankruptcy. Following the path of the Rosenberg case could have the potential to hugely change the way student loan debt is treated in bankruptcy. Anyone who is interested in discussing bankruptcy options, contact Lewis and Jurnovoy, a Crestview creditor lawyer.
SOURCE: Press Advantage [Link]
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