The U.S Department of Justice issued revised protocols in November 2022 for its interpretation of the undue hardship standard for discharge of federal student loans. While the official definition of “undue hardship” as applied under 11 U.S.C. Sec. 523(a)(8) (the so called “Brunner test”) has not been replaced, the manner in which the Department of Justice in collaboration with the Department of Education reviews these applications appears to have been liberalized somewhat.
The specific requirements for consideration by the Department of Justice are the following;
The demonstration of the above are fact sensitive and based in large measure upon IRS guidelines for required and discretionary spending. We have engaged with the Stretto DMM Portal to assist in reviewing these formulas to create an in depth analysis for each prospective adversarial proceeding and determine the likely probability of success on such applications – prior to incurring the cost and effort to filing such an adversarial proceeding.
We will have our clients obtain a student loan aid report from www.studentaid.gov which can then be uploaded into the portal. We will then do a thorough analysis of the Debtor’s budget and expenses so that we have as much viable information to review the likelihood of success- and then submit to the Department of Justice in the Attestation.
We encourage all potential debtors with unaffordable student loans to consider this possibility for permanent and essentially life changing relief.
Please contact our office to schedule a student loan review.
What’s New? Discharge Student Loans For Undue Hardship
Significant Changes in Student Loan Debt Law
Just Announced: Additional Student Loan Debt Relief
Professional Help For Student Loans
Copyright ©2023 Steven J. Abelson, Esq., PC is a professional corporation of the State of New Jersey. We Are A Debt Relief Agency Pursuant To 11 USC Sec. 527(A)(4). We Help People File For Bankruptcy Relief Under The Bankruptcy Code.