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Debtor Tried to Discharge Student Loans – Court Denied; Debtor Ordered to Pay Attorney Fees

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Discharging of student loans in general is taken on a case by case basis.  That being said, it is extremely difficult to discharge student loans.   Here is a case that when the Debtor lost in Bankruptcy Court, the Debtor even had to pay the Attorney Fees to the Defendant of $11,130.


  • Debtor borrowed $149,197.00 to fund his education at St. George University School of Vet. Medicine in Granada.
  • Debtor asserted that the loans were made by a for-profit entity (non-gov. unit or nonprofit).
  • Debtor asserted  loans were not “qualified educ. loans”.

Bankruptcy Court Ruling

  • Loans were covered as non-dischargeable based on the bankruptcy code.
  • Loans were made under a program partially or fully-funded by governmental unit or non-profit institution for funds received as an education benefit
  • The Court also found that the contractual provisions of the loan included granting of attorney fees if the Defendant had to defend repayment.
  • Court awarded $11,130 in attorney’ fees defending their claims.

In summary, you need to seek the advice of an experienced attorney in bankruptcy law so that he/she can provide you with good sound advice before you try to “fight your case”.    A qualified bankruptcy attorney would not have tried to get these loans discharged.