Geraci Law L.L.C. successfully discharged $23,306.90 in student loan debt. Geraci Law filed a case against the lenders in Federal Court in October of 2016. Geraci’ Law’s complaint alleged their client, an elderly woman, made a good-faith effort to repay the loan; making all of her arranged payment starting in March of 2016. However, Geraci Law asserted their client’s student loan debt posed an undue hardship.
Student loans are usually not dischargeable and most people will be required to continue paying on them even after a bankruptcy. One of the ways to get rid of student loans is to prove the loan poses and undue hardship to the debtor. When determining if repaying student loans poses an undue hardship, the court adopted the “Brunner Test.” The “Brunner Test” is a three-prong test to determine whether student loan debt can be discharged. For student loans to cause an undue hardship you must prove:
- That the debtor cannot maintain, based on her current income and expenses, a “minimal” standard of living for herself and her dependents if forced to repay the loans;
- That additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the loans, and
- That the debtor made good-faith efforts to repay the loans. Krieger, citing Brunner v. New York State Higher Educ. Servcs., 831 F.2d 395 (2nd Cir. 1987).
Geraci Law alleged our client met each prong of the test and as a result, her student loans should be discharged. After months of work on the case, Geraci Law attorneys and the defense agreed to have the student loans discharged and the case came to an end.
Thanks to the terrific work by the Geraci Law L.L.C. trial team, our client has successfully discharged more than $20,000 in student loan debt.