This information is intended as an outline of the Federal (NOT private) student loan discharge process using attestation. Note that these procedures and eligibility changes frequently and you should discuss your individual situation with a qualified attorney. The current standards are basically:
1. You presently lack an ability to repay the loan
2. The inability to pay is likely to persist in the future
3. You have acted in good faith in the past in attempting to repay the loan
Currently, the ability to discharge student loans using an attestation process is done as part of a currently open bankruptcy case filed AFTER November 17, 2022. IF you have a prior bankruptcy case that was filed and closed prior to this date, it may be possible to reopen it for the purpose of discharging student loans, speak to an attorney.
The current process requires an Adversary proceeding to be filed as part of an active bankruptcy case. Note that an adversary proceeding is a separate proceeding from the initial bankruptcy proceeding and does require new fees and costs.
An adversary proceeding is opened against the Department of Education who in turn will use the Department of Justice (DOJ) to represent them in the proceeding. The bankruptcy debtor will use their own privately retained attorney that they will be responsible to privately pay and retain. You and your attorney will work together to prepare a petition and attestation form that provides a snapshot of the whole financial picture of your financial situation to submit.
Your attorney will require you to retrieve certain information used to create this paperwork for the DOJ to review. It is very important to provide this information quickly, accurately and thoroughly as there are no “do overs”. The amount of information you will need to provide is extensive.
Once your petition and attestation have been filed, served, etc., the DOJ US Attorney will review the petition, this process can take anywhere from 6-18 months. Once the review is complete, an offer may be made on student loans as either a Complete Discharge, Partial Discharge or No Discharge. You can choose to accept this offer or reject the offer and litigate. It’s important to remember that if you reject the offer and litigate, then lose the case, future options to discharge the debt for you may close, so it’s important to discuss these choices carefully with your attorney.
If you want to discuss a student loan discharge as part of a bankruptcy case, Attorney Allison Greenlee Korr handles bankruptcy cases in the Western District of Michigan, call today for a consultation. 269-381-4471