A Fort Walton Personal Bankruptcy Attorney Brings Attention to the Recent Student Loan Debt Ruling

Fort Walton, Fla. – Last month, a court case ruling made it easier for individuals to declare their student loan debt dischargeable. The judge of this case found the debtor to have satisfactory circumstances for student loan debt dismissal in bankruptcy. A Fort Walton personal bankruptcy attorney, Lewis and Jurnovoy, is highlighting the ruling of this recent court case.

Before this ruling, it was notoriously difficult for an individual to get their student loan debt discharged through bankruptcy. Courts often use the “Brunner Test” to determine whether a person meets the requirements for student loan debt dismissal in the name of “undue hardship.”

This test consists of three factors: the debtor’s inability to maintain a minimal standard of living due to the burden of loan payments, the high probability that those circumstances will endure for the majority of the loan period, and proof that the debtor made a good-faith effort to pay back their loan. Individuals say that courts have been misinterpreting the criteria of the Brunner Test for decades, making it nearly impossible for individuals to use bankruptcy to rid themselves of their student loan debt.

The debtor in the recent court case, Kevin Jarod Rosenberg, owed over $220,000.00 in student loan debt. He declared this debt to be dischargeable under section 523(a)(8) of the Bankruptcy Code, which contains the protocol regarding “undue hardship.”

In Rosenberg’s case, the Brunner Test was used to determine whether his declaration could be ratified. On January 27, 2020, a decision was made, and Rosenberg’s student loan debt was discharged. This recent ruling has set a new precedent for bankruptcy decisions. The way in which student loan debt is treated in bankruptcy now has the potential to change drastically.

Lewis and Jurnovoy, a Fort Walton bankruptcy attorney, is ready and available to discuss bankruptcy options with individuals of varying circumstances. Give them a call at 850-409-3350 or visit their website at https://lewisandjurnovoy.com/ for more information.