Discharging Student Loan Debt

In a recent Chapter 7 bankruptcy case handled by Atty Jen Hayden at Molleur Law, we had the privilege of advocating for a woman facing an overwhelming burden: over $155,000 in federal student loan debt. This client, aged 74, was diligently working full-time to make ends meet. However, the suggested payment plan from the federal government was simply untenable given her circumstances.

Recognizing the dire situation, we took proactive steps by filing an adversary proceeding as part of her bankruptcy case. Our aim was clear: to seek discharge of her student loan debt. After thorough deliberation, the Department of Education concurred with our assessment. They acknowledged that our client, at 74 years old, had diligently serviced her student loans for over two decades. Yet, it was evident that expecting her to sustain even nominal monthly payments would be unrealistic, jeopardizing her ability to maintain a basic standard of living.

This decision brought immense relief and newfound hope to our client. We are thrilled by this outcome, as it marks a pivotal moment in her life. At Molleur Law, we remain committed to securing positive resolutions that truly transform the lives of our clients.