December 16, 2008: Discharge - Unemployed Chapter 7 debtor was entitled to "undue hardship" discharge of student loans.
A 49-year-old Chapter 7 debtor who, despite graduating more than 26 earlier from a prestigious Ivy League school, had been unemployed or underemployed for many years since he graduated for various circumstances not entirely within his control, including the failure of a promising business that he had started when a major customer decided to change its method of operation and no longer needed the debtor's product, was entitled to an "undue hardship" discharge of his more than $80,000 in student loan debt. The debtor was currently unemployed, penniless, homeless and receiving food stamps. Moreover, the debtor, since the failure of his business, had been employed principally as a waiter and/or bartender, and despite having sent out employment applications to more than 40 restaurants, had been unable to obtain work in the food and beverage industry. Even if the debtor could obtain such employment, his earnings therefrom would be insufficient to permit payment on the student loans while still allowing for a minimal standard of living.
Thursday, December 18, 2008
In re Mabry, (Bkrtcy.E.D.Mo.)
Posted by Rachel Lynn Foley at 8:44 AM
Labels: MOEB, student loan, undue hardship
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