Valuable Precedent May Make Student Loans Easier to Discharge in Bankruptcy

An article in U.S. News & World Report explains the value of a recent decision by the 9th Circuit United States Court of Appeals, which involved a law school graduate’s ten year battle  to discharge his law school student loans after having failed to pass the bar exam three times.  Years later and saddled with a moderate income, a wife and a child, Michael Hedlund argued that his student loans payments were excessive and constituted an “undue hardship.”

What’s remarkable is that the 9th Circuit agreed,  while allowing him to have a reasonable car expense, two cell phones, cable and children’s haircut expenditures.  These expenses are seemingly ordinary in nature but Courts had before been more conservative about a debtor’s obligation to “belt tighten.”

Hedlund’s case isn’t entirely groundbreaking but it is a valuable precedent that paves the way for future challenges to the dischargeability of student loan debt.

Call Attorney Mark Kafantaris to discuss how the Hedlund case may make it easier to discharge your excessive student loan debt in bankruptcy.   Ph. 614.223.1444 or

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