Private Loans Bankruptcy Discharge

Summary

Private student loans in Massachusetts can be discharged in bankruptcy, but proving undue hardship is challenging. The Brunner Test is often used, requiring proof of inability to maintain a minimal standard of living, that the hardship will persist, and that good faith repayment efforts were made. Basic necessities like food, shelter, clothing, and medical care define a minimal standard of living. To pursue discharge, file an Adversary Proceeding in bankruptcy court after filing for Chapter 7 or Chapter 13 bankruptcy. Visit the U.S. Bankruptcy Court, District of Massachusetts for necessary forms and consider consulting a local attorney for guidance.

Full Conversation

Yes. What is the standard for a minimal standard of living?
The "minimal standard of living" generally means the ability to cover basic necessities such as:
- Food
- Shelter
- Clothing
- Medical care
It doesn't include luxuries or non-essential expenses. Courts will look at your specific circumstances to determine what is considered minimal for you.
Do you need more detailed guidance on proving undue hardship?
Yes. Please provide me with any forms or filings needed to do this.
To pursue the discharge of private student loans due to undue hardship in Massachusetts, you need to file an Adversary Proceeding in bankruptcy court. Here are the steps:
*. Petition for Bankruptcy: File for Chapter * or Chapter * bankruptcy first.
*. Adversary Proceeding: File a complaint to start the adversary proceeding.
For forms and filings, visit the [U.S. Bankruptcy Court, District of Massachusetts](https://www.mab.uscourts.gov/). You may also want to consult with a local attorney for detailed guidance.