Being trapped in the endless cycle of debt repayment is an unfortunate reality for millions of US citizens. Every day, we see individuals struggling to make ends meet while doing their best to keep up with payments – or, rather, because they’re trying to keep up with payments.
But, here’s the thing: most of them are putting themselves through a proverbial hell unnecessarily – simply because they believe there’s no other way. However, student loan debts can be discharged if the person can prove that continued repayment efforts will cause undue hardship, which requires passing the rigorous Brunner test.
We won’t lie – doing so is an arduous process, but it is by no means unachievable, especially with the changes introduced in the Fairness Act of 2023. With the help of experienced San Diego debt attorneys and the info you can find in this guide, you’ll have everything necessary to begin your journey toward financial independence.
What is the Brunner test?
Courts in California and several other states use the Brunner test to determine if a debtor meets the undue hardship criteria necessary for student loan debt discharge in bankruptcy. To pass the Brunner test, you will have to prove the following:
- Present inability to repay the debt: You won’t be able to maintain a minimal standard of living for yourself and your dependents if you’re forced to continue repaying the debt. Do note that the “minimal standard of living” is open for interpretation by the court, but it typically means that your expenses exceed your income by a significant margin.
- Future inability to repay the debt: Your struggles will persist for the remainder of the debt repayment period. This can include proving that you have ongoing financial difficulties, such as due to disability, limited job opportunities, limited employment options, etc.
- Good faith effort to repay the debt: You did everything in your power to repay the debt, before resorting to bankruptcy as a last option. This may include proving that you’ve explored other options, such as different repayment plans or negotiating with the creditor.
If you meet the above criteria, you will qualify for debt forgiveness and the Department of Justice will recommend to the court to give you a partial or complete discharge of your student loans.
How to prove undue hardship for student loans?
Proving undue hardship will put you through a lot of scrutiny by requiring you to provide numerous pieces of evidence, such as:
- Detailed financial records showing your income, expenses, assets, and liabilities.
- Documentation of any extenuating circumstances that contribute to your financial hardship. For example, you will need medical records if you have a disability or chronic illnesses, employment records if your hardship is caused by job loss, or documentation of Government Assistance if you’re participating in government aid programs.
- Proof of your good faith efforts to repay your lender(s), such as correspondence between you and the bank that showcases you’ve tried to negotiate the terms of repayment or that you’ve explored other options.
Where to find tenacious San Diego debt attorneys near me?
At the Law Offices of Mark L. Miller, you can find some of the most competent debt lawyers San Diego has to offer.
For over 25 years, we’ve been helping individuals everywhere from Kate Sessions Memorial Park to Paradise Canyon and beyond overcome their student debts, setting them up for a future of financial independence.
You can count on our expertise every step of the way, from selecting the most feasible debt relief strategies and filing for student loan bankruptcy to negotiating with creditors and advocating for your rights in a court of law. Reach out to us today and join more than 12,000 satisfied individuals whom we’ve helped become student-debt-free!