66 East Main Street, 3rd Floor Little Falls, NJ 07424

Pro Se Debtor’s Mistakes Resulted in Denial of Student Loan Discharge

Share on facebook
Share on linkedin

There are 3 factors or prongs (Brunner Test) that must be met to discharge student loan in a bankruptcy:

  1. Poverty:
  2. Persistence
  3. Good Faith

Details of Case:

  • Debtor (representing herself) sought to discharge her student loan in bankruptcy.
  • Debtor met 2 of the above prongs.
  • Debtor had not responded to the U.S. Department of Education with required support behind her application for an administrative discharge and, thus, did not show good faith.

Court Ruling:

  • Although the Debtor could meet all 3 (three) prongs of the requirements to discharge student debt, she did not show good faith when she failed to fully respond to the U.S. Department of Education’s application for an administrative discharge.
  • Debtor (U.S. Dept. of Education) filed a summary judgment application and it was granted by the Court.
  • Debtor could not discharge student debt in bankruptcy since she failed to show good faith in responding the information requested.
  • If the Debtor had completed the application and provided the required documents, her student debt would have been discharged.

Here we see that representing yourself in a bankruptcy issue is not prudent.   A certified bankruptcy attorney (as I am) would know the requirements and most definitely urged the Debtor to complete the application in full.