Student loans · Beverly Hills
Student Loan Discharge in Beverly Hills Based on Undue Hardship
Student loan discharge (undue hardship) in Beverly Hills is possible, but it takes a separate lawsuit inside your bankruptcy. If your student loan payments are impossible on your income and that is not likely to change, call (310) 362-9071 for a free consultation to see if a claim is worth bringing.
- Can you keep a minimal standard of living and pay?
- Is that likely to last for much of the repayment period?
- Have you made good faith efforts to repay?
Who may have a case
- Your income barely covers basic living costs, even on an income-driven plan
- A disability or long-term health problem limits your ability to work
- You are older and the loans will outlast your working years
- You have tried to repay, applied for deferments or enrolled in repayment plans
- You have private student loans that may not meet the legal definition of an education loan
How we evaluate and bring a claim, step by step
- Sort the loans. Federal, private and the type of each loan. Some private loans used for costs beyond school may be discharged without proving undue hardship.
- Check federal options first. Income-driven repayment, disability discharge and other programs may get a better result with less risk.
- Gather evidence. Income, expenses, medical records, job history and your repayment history.
- File the bankruptcy and the adversary complaint. The undue hardship claim is a separate lawsuit filed inside your case.
- Negotiate or try the case. Many claims settle with a full or partial discharge. Others go to trial.
Cost and timeline
Student loan claims are litigation and cost more than a standard filing. You get our fee arrangement in writing after we review your loans.
These cases often take several months to a year. Your other debts can be discharged on the normal schedule while the student loan claim continues.
Undue hardship cases in the Ninth Circuit
Beverly Hills is in the Ninth Circuit, which applies a three-part test to decide undue hardship. Cases are heard in the Los Angeles Division of the U.S. Bankruptcy Court, Central District of California, at 255 East Temple Street.
In recent years, the federal government adopted a simpler process for evaluating federal student loan hardship claims, using a standard form called an attestation. That has made some federal claims easier to resolve without a trial.
Mistakes to avoid
- Assuming student loans can never be discharged. It is hard, not impossible.
- Skipping repayment programs. Courts look at whether you tried.
- Not knowing what kind of loan you have. Some private loans follow different rules.
- Filing without evidence. Records of income, health and payments carry the case.
Related services
Student loans often come with credit card debt relief needs. After your case, learn about rebuilding credit after bankruptcy in Beverly Hills.
Student loan questions
Can student loans be discharged in bankruptcy?
Yes, student loans can be discharged in bankruptcy, but usually only by proving undue hardship in a separate lawsuit. Some private loans that do not meet the legal definition of an education loan may be discharged without that showing.
What counts as undue hardship?
Undue hardship generally means you cannot keep a minimal standard of living while repaying, that situation is likely to last, and you have made good faith efforts to repay. The court weighs your full circumstances.
Will bankruptcy stop my student loan payments?
Yes, filing bankruptcy pauses student loan collection, including wage garnishment, while the case is open. Interest may continue, and payments usually resume after the case unless the loans are discharged.
Can I get a partial discharge of my student loans?
Yes, some courts and settlements result in a partial discharge of student loans. Negotiated settlements in these cases sometimes reduce the balance rather than erase it.
Free consultation
See if your student loans qualify
Call (310) 362-9071 or send the form. A list of your loans from your servicer helps.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.