The Department Of Justice and the Department Of Education are implementing a new procedure for bankruptcy debtors to seek cancellation of student loan debt.
Debtors can now complete an attestation form to assist the government in assessing a discharge request. The government will consider: present ability to pay by comparing income and expenses; future inability to pay based upon factors like age and disability; and the good faith efforts of the debtor, including reasonable efforts to make the loan payments.
While the bankruptcy judge makes the final decision whether to cancel the student loan debt, the Justice Department can play an important role in that decision by supporting discharge in appropriate cases. Also, in some cases the government may support the issuance of a partial discharge.
Law Offices Of Todd S. Frankenthal has offices in Fort Lauderdale, Boca Raton, and West Palm Beach. It represents clients in the United States Bankruptcy Court For The Southern District Of Florida.