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 only just be released in bankruptcy if excepting your debt from release would impose a “undue difficulty” regarding the debtor and also the borrower’s dependents. Nevertheless the Code does not give you a meaning or test for determining undue difficulty. It’s left to bankruptcy courts to determine undue difficulty for education loan borrowers. That will quickly alter. Earlier in the day this year, the U.S. Department...

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