Exactly about Scholarly Commons IIT Chicago-Kent College of Law
Seventh Circuit Review
Once the wage-market stays stagnant, and pupil indebtedness will continue to increase, numerous graduates battle to balance their education loan financial obligation. Generally speaking, whenever a debtor files for bankruptcy, her education loan financial obligation is certainly not dischargeable. But, under 11 U.S.C. § 523(a)(8), debtors can discharge their figuratively speaking through bankruptcy should they can show that keeping those education loan debts would impose a hardship that is”undue upon on their own. Regrettably, Congress failed to undue define what hardship” suggested when enacting the bankruptcy rule. Courts have actually since been left to interpret this is of “undue hardship, ” and several achieve this in numerous methods.
Over the different circuits, “undue difficulty” is examined similarly—but the differences in definitions can be outcome determinative. (more…)
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