New Federal Guidance on Discharging Student Loans in Bankruptcy Is a Game Changer

The Justice Department, in partnership with the Department of Education, recently announced new guidelines that loosen the strict application of the “undue hardship” exceptionwhen defending a student loan dischargeability action. This new guidance is a game changer. In the past the Department of Justice narrowly applied the undue hardship exception when defending discharge of student loans to the extent that it was almost impossible to discharge federal student loans in bankruptcy. Now government attorneys have been given the green light to consent to discharge if a debtor fills out an attestation form and meets certain criteria.

As . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

branson2
Branson Law PLLC (Orlando, FL)

Tammy Branson is a senior paralegal at BransonLaw for over 25 years in Orlando. She has been a Certified Bankruptcy Assistant since 1995. She is a member of the Central Florida Bankruptcy Law Association and the Association of Bankruptcy Judicial Assistants. She has presented topics covering Chapter 13 issues and Mortgage Modifications to the Central Florida Bankruptcy Law Association Paralegal Subcommittee. She has worked on over 400 loan modifications through the Orlando Divisions Residential Mortgage Modification Program. She has led the charge for Mortgage Modification Mediation programs across the Country and has taught hundreds of attorneys in the process. In 2016 she was nominated by all three of the bankruptcy judges in the Orlando Division, Middle District of Florida for the Orange County Bar Association Paralegal Section, Paralegal of the Year Award, for which she won. She is the current Committee Chair for the Middle District of Florida Student Loan Program Committee.

branson1
Branson Law PLLC (Orlando, FL)

Robert Bailey Branson is an attorney focusing on consumer bankruptcy for twenty five years in the Orlando area. He served proudly in the United States Army from 1978 to 1983. He obtained his Bachelor of Arts degree from the University of Central Florida in 1985 and a Juris Doctorate from the University Of Florida College Of Law in 1988. He is a member of the Central Florida Bankruptcy Law Association and the former Chair of the Orange County Bankruptcy Committee. He is a current member of the Steering Committee for the Middle District of Florida Bankruptcy Court. He is a mediator with the United States Bankruptcy Court and as mediator has performed over 500 mortgage mediations. As Debtor Counsel he has completed over 300 mortgage modifications since the program’s inception. Mr. Branson participates and has established Mortgage Modification Education, a company dedicated to training attorneys and staff to perform effective loan modification mediations.

Related Articles

October 20, 2019
By The Honorable William Houston Brown (Retired) Debtor’s objection to tax claim for being “too low” was rejected. Noting that the debtor could not benefit prior to distribution to creditors, in event trustee found assets for distribution, debtor’s objection to claim filed by tax creditor on basis that claim was “too low” was rejected. “The debtor comes last, not first,...
Members
Molly Pro picture
June 26, 2022
Consider if you will that your client has just filed a Chapter 13 Bankruptcy. They have intelligently chosen to surrender a luxury item - a boat or 4-wheeler or even that extra vehicle they don’t need. Because the creditor would like to preserve the value of the collateral by obtaining possession quickly, they file a Motion for Relief shortly after...
Members
August 22, 2021
By Cathy Moran, Esq., (Redwood City, CA) When a married couple books a bankruptcy consultation, you have an immediate problem: There be dragons, as early map makers helpfully provided. Because, as a lawyer friend of mine says: Anytime there are two people sitting across from you, you have a conflict of interest. That pithy expression has stuck with me and...
Members
January 12, 2020
By David Cox,1 Cox Law Group, PLLC (Lynchburg, VA) Click here for Part 1 of 3 C. Determining whether to file. Collection considerations outside of bankruptcy. Is the debtor judgment-proof? Are assets and income exempt? How active are creditors? Is the current situation likely to change? Has there been a previous filing, and if so, are there stay or exhausted...
Members
Copy of Hildebrand-2016
August 20, 2023
Equity that accrues as a result of market conditions in debtor’s assets between the time of confirmation of a Chapter 13 plan and conversion to Chapter 7 constitutes property of the estate which may be administered by the Chapter 7 trustee.
Members
Academy Circle Logo Final
September 3, 2023
Tracy Updike of Harrisburg, Pennsylvania, has been named as a Chapter 13 Standing Trustee for the Northern District of Indiana.  Updike will be filling the trusteeship vacated by Debra Miller when she accepted a trusteeship in the Eastern District of Tennessee.
February 2, 2020
By The Honorable William Houston Brown (Retired) Class action certification on predominance. The Eleventh Circuit remanded, finding that the District Court had abused its discretion in refusing to certify a class on a predominance theory for former debtors who had obtained discharge of personal liability on residential mortgages and who asserted violations of the FDCPA by a loan servicer. The...
Members
Copy of Hildebrand-2016
June 18, 2023
The Ninth Circuit has now joined its sister Circuit in holding that the Bankruptcy Code does not permita Chapter 13 Trustee to retain the percentage fees collected on payments that a chapter 13 debtor made pre-confirmation in accordance with 26 U.S.C. §586 but, upon dismissal prior to confirmation of the plan, is obligated to return the fee to the debtor,...
Members
September 19, 2021
By Helen M. Morris, Chapter 13 Standing Trustee for the Northern and Southern Districts of West Virginia Like most trustees, my case load is down, and I’ve been actively encouraging new filings. Perhaps too enthusiastically as certain new cases reflect. A bankruptcy filer who has been dormant for months filed a new case recently. Schedule A is clearly marked with...
Members
August 2, 2020
By The Honorable William Houston Brown (Retired) Undistributed funds returned to debtor upon dismissal. Under § 1327(b)’s vesting requirement, unless a confirmed plan provides otherwise, any undistributed funds held by the trustee at dismissal of the case must be returned to the debtor. Although not necessary to rely on § 347(b)(3), the conclusion on effect of vesting at confirmation was...
Members

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: