Topic: New DOJ/ED Guidance on Undue Hardship Discharge of Student Loans in Bankruptcy
Date: Thursday, December 8, 2022
Time: 12:30pm -3:30pm Eastern
Speakers: Tara Twomey, Esq., Ed Boltz, Esq., John Rao, Esq., Norma Hammes, Esq., Ike Shulman, Esq. & Joshua Cohen, Esq.
Description: On Thursday, November 17th the Department of Justice and Department of Education released new guidance for the government when handling requests to discharge federal student loans in bankruptcy. These new guidelines advise DOJ attorneys to stipulate to the facts demonstrating that a debt would impose an undue hardship and recommend to the court that a debtor’s student loan be discharged under certain circumstances. The guidance provides a framework for Justice attorneys to apply in evaluating the factors that courts typically consider in determining undue hardship. It creates presumptions for some factors based on the borrower’s circumstances that should avoid unnecessary litigation.
Why you should attend: NACBA, with allies at NCLC, the Student Borrowers Protection Center and others have been working for more than year with folks at the Departments of Education and Justice on this reimagined and liberalized guidance for the application of the Brunner Test. This is the most significant change regarding student loans and bankruptcy since 2005, when private student loans were made nondischargeable. Up until today, the current bankruptcy law treats student loan borrowers who face severe financial difficulties in the same, severe manner as people trying to escape child support payments, alimony, overdue taxes, and criminal fines. Join NACBA as we analyze and explain what this means for your consumer bankruptcy practice and clients in bankruptcy with federal student loans.