Loans Disability Discharge

[sorormp3]

Does anyone have student loans from school? Did you get your loans discharged because of MS?

[Pipes123]

Hi,

I usually just lurk here and read. I joined because I can answer this. I have not discharged my student loans. I have MS, but am not disabled. If you think you might qualify you should check with an experienced bankruptcy attorney. You want one who has experience pursuing lawsuits in bankruptcy court, not just filing basic cases.

One of the things the court will look at is whether you can work and whether you are ever likely to be able to work again.

[MSer102]

If you think you might qualify you should check with an experienced bankruptcy attorney.

I don't understand how a bankruptcy attorney can help because student loans can't be discharged through bankruptcy. A lot of people with health problems and who become disabled go bankrupt because of medical bills, but bankruptcy and disability are different legal issues.

One of the things the court will look at is whether you can work and whether you are ever likely to be able to work again.

I don't understand this part either because deciding whether someone can work and whether they are likely to be able to work again is the job of a disability judge, not a bankruptcy judge. Bankruptcy doesn't depend on a person's ability to work. It depends on their ability to pay regardless of whether they are disabled.

Federal loans have a disability clause, private loans rarely seem to. The loans can be dismissed with compelling proof of disability. It doesn't have anything to do with bankruptcy. And again, student loans can't be dismissed through bankruptcy. The loan documents explain the procedure for applying for a disability dismissal.

[Pipes123]

Soror asked about discharge. That means bankruptcy.
There may also be contract related ways to no longer have to pay your federal loans.

You are correct that you can't discharge student loans in bankruptcy court without bankruptcy litigation. It has however been done with bankruptcy litigation. It would be done more often, but most of the people who qualify can't afford representation.

I was trying to quickly encourage soror to ask a professional. Here is a news link that points to some of the issues.

The name of the test the courts usually apply for whether student loans can be discharged is called the 'Brunner Test', also called the undue hardship standard. One of the easiest ways to show the most difficult of the three requirements to meet this test is to show that you can no longer work and earn enough to pay your loans.

I haven't brought one of these cases myself, only read about them, so I apologize for the lack of precision. I was probably also oversimplifying. If you google student loan bankruptcy discharge, or Brunner Test, or Undue Hardship standard in bankruptcy, you can find information that is on point. I had a URL to share but the forum didn't let me include it.

[Windwalker]

Please do not pursue the "bankruptcy" path. It is misguided.
Those telling you that this can be accomplished via any type of bankruptcy proceeding are simply incorrect.

I had my student loan discharged. All it took was my doctor filling out a simple form. They will follow up in 2 years with another simple form where you can state "still disabled".

My outstanding student loan was less than $500 but I don't think the balance matters.

Go on-line and find the Govt. form for requesting student loan discharge.

[cali1892]

I am working on doing this right now. I have gotten all the paperwork done and mailed it back last week. I haven't heard anything yet. I am on disability, but I have not filed bankruptcy.

[MSer102]

I can understand why it might take complicated and expensive bankruptcy court proceedings to discharge a private student loan that doesn't have a contingency for disability. So sorormp3 if that's the case for you you have my sympathy.

Government loans though have disability allowances that shouldn't require much more than providing medical statements and evidence of SSDI or SSI approval - and probably a lot of patience for wading through red tape. No need to turn it into something bigger and more complicated than it is.

[sorormp3]

Thanks

Thanks for the advice and tips everyone. I am waiting for the paperwork to come now. My doctor has to fill out her section. Wish me luck.

[Pipes123]

I am glad to know that there is a simple way to handle federal student loans without bankruptcy. I may need this myself in a few years. This is obviously much better than any legal proceeding.

I didn't come here to start an argument. I have very much benefitted from all the conversations here.

On a slightly different topic, no one should hire an attorney without checking references. Preferably they should get a referral from a satisfied client or a reputable non profit or government organization like legal aid.

I'm not wrong about bankruptcy. I've worked in that area of law. In US bankruptcy law, the debts that are not usually dischargeable, including student loans, are described in title 11 US Code section 523. There is a loophole, in subsection (a) 8 (A) and (a) 8 (B) that creates an exception for what is called 'undue hardship' for student loans. The Brunner case gives the rule the courts usually apply when they decide to discharge a student loan.

There is a way, by filing a law suit called an 'adversary proceeding' in bankruptcy court to get student loans discharged if you convince the judge that you fit in that loophole. Practically speaking, it's not for most people. But it has been done. If someone needs it I hope they can use it.

[bubblebabe]

Sorormp3,

Hi I noticed that your signature says that you are a Librarian I for the Broward County Library. My mother works there, at the main, and I remember running around the main library when I was a kid!!
I moved to Georgia last year and found out I had MS shortly after the move which was tough not having my mom around.
Anyway seeing your signature brought back good memories :-)

Lisa

[sorormp3]

Hello!

Hi Lisa! Yes I talked to mom on Friday! She told me she gave you my number. You can call or text me anytime.
Your mom is the best.