New Hampshire Complaint for Student Loan Repayment by United States After Defendant Declared Chapter 13 Bankruptcy

Once your ready and you've completed your payments, your assigned Chapter 13 trustee will complete an entire review of your Chapter 13 case.After the report from the trustee has been filed, the U.S. Bankruptcy Court will mail you a form titled Certification of Eligibility for Chapter 13 Discharge.

Most debtors won't be able to discharge (wipe out) student loan debt in Chapter 7 or Chapter 13 bankruptcy. However, if you can prove that repaying your student loans would cause an undue hardship to you, you can get rid of your student loans in bankruptcy.

To qualify for student loan discharge through bankruptcy, you'll have to prove you'd face undue hardship in repaying them. The definition of undue hardship can vary by person, so a bankruptcy court might evaluate your case using the Brunner Test.

Student Loans Are Treated As Nonpriority Unsecured Debts in Chapter 13 Bankruptcy. In Chapter 13 bankruptcy, student loans are treated as nonpriority unsecured debts just like credit cards and medical bills.However, once your Chapter 13 bankruptcy is over, you must continue to pay your student loans.

In most cases, you can't get new credit or take out a loan during your Chapter 13 case. But there are some exceptions. Getting new credit or a loan during your Chapter 13 bankruptcy case is difficult. However, in certain circumstances, it might be possible.

If you can successfully prove undue hardship, your student loan will be completely canceled. Filing for bankruptcy also automatically protects you from collection actions on all of your debts, at least until the bankruptcy case is resolved or until the creditor gets permission from the court to start collecting again.

What is a partial financial hardship? Having a partial financial hardship means that your student loan bills are too high for your income, relatively speaking. In practical terms, it means you would pay less each month in an income-driven repayment plan than the standard repayment plan.

Tax returns. Medical records and bills if you have a disability or medical condition. Bank statements. Credit card statements. Necessary expenses such as food, clothing, household maintenance, etc. Documentation showing you made previous attempts to pay off your loans.