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Durbin asserted that excessive hardship really should not be the only way to address figuratively speaking inside the bankruptcy proceeding

Durbin asserted that excessive hardship really should not be the only way to address figuratively speaking inside the bankruptcy proceeding

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Within the 1998, Congress got rid of the latest wishing months — just how many ages a debtor would have to hold off once the funds basic turned owed until they might seek bankruptcy relief — deciding to make the undue difficulty simple the only way figuratively speaking you are going to getting discharged. Its a notoriously hard standard in order to meet — anyone Legislation Cardio from inside the Santa Ana, Calif., has furnished 5,000 case of bankruptcy consultations so you’re able to debtors because the 2012 however, has only tried to discharge federal student education loans five times whilst understood brand new almost every other cases was ineffective, told you E Gonzalez, leading attorneys of the individual law product.