An Indiana man filed a Chapter 7 Bankruptcy with Peter Francis Geraci and Geraci Law Attorney John Allman because of overwhelming medical bills and student loans. After earning his GED, he became homeless and unemployed.
Because of diabetes retinopathy and the inability to afford necessary medical treatment, his vision started to deteriorate and he was diagnosed as legally blind at 31 years old. He started receiving Social Security Disability benefits as his only source of income. He has been unable to find work because of his disability and he met with Attorney John Allman at the Geraci Law Indianapolis location.
Attorney Allman listed American Education Services and Sallie Mae as creditors on the bankruptcy petition. Attorney Allman filed an adversary proceeding on his client’s behalf arguing the student loan debt should be dischargeable in a Chapter 7 bankruptcy because of the undue hardship. The total amount owed in student loans was approximately $34,000.
Student loans are not generally dischargeable in a bankruptcy filing. Attorney John Allman was successfully able to argue that the student loans imposed an undue hardship. The Indiana man could not meet his basic living needs on his fixed income and could not work because of his disability.
Without the above and beyond work by Geraci Law staff and Attorney John Allman, the Indiana man would have been left with a fixed income of less than $950 per month and over $34,000 in debt.