11 U.S.C. § 523

Section 523(a)(8) permits a hardship discharge of a student loan when the debtor makes good faith efforts to repay it, even if the debtor has made no payments.

Savage v. Educational Credit Management Corporation · filed 2023-03-31(a)(8)

Despite not having made any payments on the Loan, Debtor has shown substantial attempts to gain employment, maximize his income, and minimize his expenses, and has never been in default on the Loan. For these reasons, Debtor is entitled to a hardship discharge of the Loan under 11 U.S.C. § 523(a)(8).

Section 523(a)(8) requires a debtor seeking an undue-hardship discharge of a student loan to show a good-faith effort to repay it.

Gregory v. U.S. Department of Education (In Re Gregory) · filed 2008-04-01(a)(8)

On balance, therefore, the weight of evidence in this matter does not warrant a finding that the Debtor, as applied to the Brunner Test, made a good faith effort to repay her student-loan debt. Consequently, as it is the Debtor’s burden to establish each and every element of the Brunner test, the Court cannot find that the “undue hardship” standard for discharging student loans under § 523(a)(8) exists in this particular case.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show a good-faith effort to repay them.

Educational Credit Management Corp. v. Mosko (In Re Mosko) · filed 2008-02-12(a)(8)

Since the Moskos have failed to demonstrate the good faith required by the Brunner test, they have failed to prove that they are entitled to a discharge of their student loans.

Section 523(a)(8) does not permit even a partial discharge of a student loan when the debtor fails to meet the undue hardship requirements.

Education Credit Management Corp. v. Blake (In Re Blake) · filed 2007-10-22(a)(8)

In addition, because the requirements of 523(a)(8) have not been met, the Bankruptcy Court does not have the authority to grant a partial discharge.

Section 523(a)(8)'s undue hardship analysis considers a debtor's spouse's income and total household expenses when assessing whether the debtor can maintain a minimal standard of living while repaying a student loan.

Wynn v. Educational Credit Management Corp. (In Re Wynn) · filed 2007-09-28(a)(8)

Therefore, the Court will consider the income of Mrs. Wynn and the total household expenses in order to determine whether the Debtor and his dependents can maintain a minimal standard of living if he is required to repay his student loan.

Section 523(a)(8)’s undue hardship inquiry does not consider a debtor’s past good faith efforts to repay a student loan.

Crowley v. United States Department of Education (In Re Crowley) · filed 2001-02-22(a)(8)

Therefore, for the reasons discussed above, we hold that a debtor’s good faith efforts at repayment should not be included in the Court’s consideration of “any other relevant facts surrounding the particular bankruptcy case” for purposes of determining undue hardship under 11 U.S.C. § 523(a)(8).

Section 523(a)(8) permits discharge of student loan debt to the extent the debtor cannot repay it without undue hardship.

Sequeira v. Sallie Mae Servicing Corp. (In Re Sequeira) · filed 2001-01-31(a)(8)

If she can pay part of the debt from disposable income, and the other elements are satisfied, the debt should be discharged, but only to the extent she is unable to pay.

Section 523(a)(8), together with § 105(a), allows a partial discharge when repayment of part of a student loan would impose undue hardship.

Nary v. Complete Source (In Re Nary) · filed 2000-10-13(a)(8)

It therefore adopts the holding of Hornsby that § 105(a) authorizes a bankruptcy court to grant a partial discharge where the undue hardship requirement of § 523(a)(8) is met as to part but not all of a student loan.

Section 523(a)(8) excepts a governmentally funded student loan from a Chapter 13 general discharge even when the debtor’s plan provided for its repayment.

In the Matter of Bryan Eugene Woods Debtor Bryan Eugene Woods v. United Student Aid Funds, Inc · filed 2000-11-27(a)(8)

Because these loans are exempted from discharge, Woods’s claim has no merit.

Section 523(a)(8) excludes educational loans made through a governmentally funded program from a Chapter 13 discharge, even when the plan provides for repayment.

In Re: Woods · filed 2000-12-05(a)(8)

Section 1328(a) specifically exempts educational loans made through a governmentally funded program, described in 11 U.S.C. § 523(a)(8),2 from discharge.

Section 523(a)(8) does not permit partial discharge of a single student loan, but separate loans may be discharged individually if repayment would impose undue hardship when considered cumulatively.

Grigas v. Sallie Mae Servicing Corp. (In Re Grigas) · filed 2000-08-22(a)(8)

Accordingly, this Court holds that, although § 523(a)(8) does not allow a single debt to be partially discharged, individual educational loans may be discharged while others may be declared non-dischargeable depending on whether each loan, on a cumulative basis, imposes an undue hardship on the debtor and his or her dependents.

Section 523(a)(8) permits consideration of a nonfiling spouse’s income when deciding whether repaying student loans would impose undue hardship.

Greco v. Sallie Mae Servicing Corp. (In Re Greco) · filed 2000-08-14(a)(8)

It is not irrational to consider the total picture of a debtor’s entire family in making a § 523(a)(8) or § 294f(g) determination.

Section 523(a)(8)(B) permits a court to discharge part of a student loan when repayment of the full debt would impose undue hardship, while leaving an affordable portion nondischargeable.

Gammoh v. Ohio Student Loan Commission (In Re Gammoh) · filed 1994-10-14(a)(8)(B)

Based upon that review, and for the following reasons, the Court finds that Plaintiffs’ partial repayment of student loans will not create undue hardship for Plaintiffs and Plaintiffs’ dependents under 11 U.S.C. 523(a)(8)(B). Accordingly, the student loan of Plaintiff Yousef S. Gammoh will be reduced and found nondischargeable in the amount of Three Thousand Five Hundred and 00/100 Dollars ($3,500.00). The student loan of Plaintiff Ruth E. Gammoh will likewise be reduced and found nondischargable in the amount of Two Thousand and 00/100 Dollars ($2,000.00).

Section 523(a)(8)(B) excepts a student loan from discharge when the debtor fails to establish that repayment would impose an undue hardship on the debtor and the debtor’s dependents.

McLeod v. Diversified Collection Services (In Re McLeod) · filed 1994-11-17(a)(8)(B)

After weighing the evidence adduced at trial, the Court concludes that the Loan does not “impose an undue hardship on the debtor and the debtor’s dependents” within the meaning of 11 U.S.C. § 523(a)(8)(B). Therefore, the Loan should be excepted from discharge.

Section 523(a)(8)(B) places on the debtor the burden of proving that repayment of an educational loan would impose undue hardship.

Doyle v. Higher Education Assistance Foundation (In Re Doyle) · filed 1989-10-04(a)(8)(B)

In a close ease such as the present one, the decision must go against the party who has the burden of proof on this issue. Is the creditor required to establish the negative of this proposition? No, the debtor has the burden of establishing this exception to the exception.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship when a modest family budget cannot cover necessary expenses and loan repayment; the debtor need not live at the poverty level.

Correll v. Union National Bank of Pittsburgh (In Re Correll) · filed 1989-10-04(a)(8)(B)

We do not believe, however, that Congress intended a fresh start under the Bankruptcy Code to mean that families must live at poverty level in order to repay educational loans. Where a family earns a modest income and the family budget, which shows no unnecessary or frivolous expenditures, is still unbalanced, a hardship exists from which a debtor may be discharged of his student loan obligations.

Section 523(a)(8)(B) requires a debtor to prove undue hardship to discharge student loans; ordinary or self-imposed hardship is insufficient.

D'Ettore v. Devry Institute of Technology (In Re D'Ettore) · filed 1989-10-05(a)(8)(B)

Any alleged “undue hardship” which the Debtor may suffer is no more than a mere “garden variety hardship” that is suffered by all bankruptcy debtors, and if there is any hardship at all, it is clearly self-imposed due to the extravagant purchases of the Debtor.

Section 523(a)(8) requires a showing of extraordinary circumstances before an educational loan may be discharged for undue hardship.

Georgia Higher Education Assistance Corp. v. Densmore (In Re Densmore) · filed 1979-12-17(a)(8)

It is clear that there must be a showing of extraordinary circumstances before the Court may discharge a debtor of educational loans within the parameters of 11 U.S.C. § 523(a)(8).

Section 523(a)(8)(B) permits discharge of a student loan when excepting it from discharge would impose an undue hardship on the debtor and the debtor’s dependents.

Connecticut Student Loan Foundation, Inc. v. Bagley (In Re Bagley) · filed 1980-05-13(a)(8)(B)

After a thorough review of the law and the evidence in this matter, this Court finds that excepting from discharge the debt due to the plaintiff in this matter will be imposing an undue hardship on the debtor and the debtor’s dependents. The debt, therefore, is discharged.

Section 523(a)(8)(B) permits discharge of a qualifying educational loan when repayment would impose undue hardship; a tight budget alone does not establish it.

Georgia Higher Education Assistance Corp. v. Bell (In Re Bell) · filed 1980-08-12(a)(8)(B)

The problem before this Court is the construction of 11 U.S.C. § 523(a)(8) and the application of that section to the facts of this case. ... While the debtor’s budget will undoubtedly be tight for the foreseeable future, that is a common rather than an undue hardship. ... The Court finds that the facts of this case indicate no undue hardship and that the debt in question falls within the general rule rather than the exception.

Section 523(a)(8)'s undue-hardship exception can apply when unemployment and low earnings leave a debtor unable to earn a living wage, even if future earnings may permit repayment.

United States v. Hemmen (In Re Hemmen) · filed 1980-10-30(a)(8)

Applying this formula and the principles announced ,to the facts in this case, the Court finds that undue hardship exists because of the very low earnings of the debtor and his lack of employment and inability to find a job paying a living wage.

Section 523(a)(8)(B) permits discharge of a student loan when repayment would impose undue hardship on the debtor and the debtor’s dependents.

Siebert v. United States Government Department of Health Education & Welfare (In Re Siebert) · filed 1981-04-22(a)(8)(B)

A student loan is non-dischargeable unless, pursuant to 11 U.S.C. § 523(a)(8)(B), it can be shown that exception from discharge will impose an undue hardship on the debt- or and his dependents. Such is the case herein.

Section 523(a)(8)(B) permits discharge of an educational loan when repayment would impose an undue hardship on the debtor and her dependents.

Trevecca Nazarene College v. Lawson (In Re Lawson) · filed 1981-04-22(a)(8)(B)

The court concludes that under these circumstances, requiring the debtor to repay the debt to the plaintiff would impose upon her an undue hardship.

Section 523(a)(8)(B) permits discharge of a student loan when repayment would leave the debtor unable to maintain a minimal standard of living for herself and her dependents.

Wegfehrt v. Ohio Student Loan Commission (In Re Wegfehrt) · filed 1981-05-04(a)(8)(B)

The bankruptcy court must determine whether there would be anything left from the debt- or’s estimated future income to enable the debtor to make some payment on his/her student loan without reducing what the debtor and his/her dependents need to maintain a minimal standard of living.

Section 523(a)(8)(B) excepts a student loan from discharge when expected improvements in the debtor’s finances mean repayment will not impose undue hardship.

Pierre v. New York State Higher Education Services Corp. (In Re Pierre)) · filed 1981-06-11(a)(8)(B)

Taking into consideration that the debtor’s income should increase and his expenses decrease in the near future, the court concludes that there is not such an undue hardship as to require discharge of this student loan.

Section 523(a)(8)(B) permits discharge of student loans when repayment would impose undue hardship on the debtor and the debtor’s dependents.

Clay v. Westmar College (In Re Clay) · filed 1981-06-15(a)(8)(B)

Excepting Debtor’s debts from discharge will impose an undue hardship on the Debtor and Debtor’s dependents.

Section 523(a)(8)(B) requires debtors seeking to discharge federally insured student loans for undue hardship to show a good faith effort to negotiate deferment or forbearance with the lender.

Rice v. University of South Dakota (In Re Rice) · filed 1981-08-05(a)(8)(B)

In order for debtors to get federally insured student loans discharged for undue hardship, they must show a good faith effort of negotiation of payment with lender regarding hardship deferment or forbearance.

Section 523(a)(8)(B) requires examination of the debtor’s necessary living expenses when deciding whether repayment of a student loan would impose undue hardship.

In Re Gladys Marie Andrews, Debtor. Gladys Marie Andrews v. South Dakota Student Loan Assistance Corporation · filed 1981-10-14(a)(8)(B)

In particular, we find that, before making a determination of undue hardship, the bankruptcy court should examine the debtor’s necessary living expenses.

Section 523(a)(8)(B) does not permit discharge of a student loan for undue hardship based on present financial difficulty when the debtor has substantial future earning potential.

Rappaport v. Orange Savings Bank (In Re Rappaport) · filed 1981-11-10(a)(8)(B)

This Court is of the view that there does not exist in the instant matter any evidence of such a unique set of circumstances that denying debtor a discharge from subject debt will cause him to suffer any hardship other than the hardship all debtors suffer when required to pay just debts.

Section 523(a)(8)(B) permits discharge of an educational loan when excepting it from discharge would impose undue hardship on the debtor.

Nichols v. Regents of the University of California (In Re Nichols) · filed 1981-11-10(a)(8)(B)

In view of the unique facts of this case the Court must find that excepting his educational loan from discharge will impose an ... undue hardship on the Debtor within the intent of 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires undue hardship to discharge a student loan; a present inability to pay is insufficient.

Briscoe v. Bank of New York (In Re Briscoe) · filed 1981-12-22(a)(8)(B)

For the purposes of 11 U.S.C. § 523, the dischargeability of student loans should be based upon the certainty of hopelessness, not simply a present inability to fulfill financial commitment.

Section 523(a)(8)(B) permits discharge of student loans for undue hardship after considering the debtor’s financial resources, expenses, and good faith.

Pennsylvania Higher Education Assistance Agency v. Birden (In Re Birden) · filed 1982-03-03(a)(8)(B)

Application of the Johnson criteria has convinced this Court that the debtor should be discharged from his student loans in this case.

Section 523(a)(8)(B) permits discharge of a student loan when excepting it from discharge would impose an undue hardship on the debtor and the debtor’s dependents.

In Re La Chance · filed 1982-03-10(a)(8)(B)

The Court concludes that excepting this student loan from discharge will impose an undue hardship on the Debtor and her dependents.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship based on the totality of the debtor’s circumstances.

Yarber v. Department of Health, Education & Welfare (In Re Yarber) · filed 1982-04-05(a)(8)(B)

The exception created by “undue hardship” under 11 U.S.C. § 523(a)(8)(B) is discretionary with the Bankruptcy Court. The inquiry is whether payment of the debt will cause the debtor undue hardship and thus defeat the underlying legislative “fresh start” policy inherent in the Bankruptcy Code. In determining the dischargeability of liability for student loan, the “totality of the circumstances” approach is appropriate.

Section 523(a)(8)(B) permits partial discharge of an educational loan when requiring repayment of the full debt would impose undue hardship.

United States v. Brown (In Re Brown) · filed 1982-03-08(a)(8)(B)

In view of the uncertainty of Brown’s income in the near future, this Court hesitates to make the total debt nondischargeable. However, a review of Brown’s expenses indicates that with some belt tightening, he could pay a substantial portion of the debt. ... To that end, Brown’s debt to plaintiff is nondischargeable to the extent of $7,000.00 and dischargeable to the extent of $3,569.14.

Section 523(a)(8)(B) requires a debtor to show that repaying a student loan would impose undue hardship on the debtor and dependents.

Lezer v. New York State Higher Education Services Corp. (In Re Lezer) · filed 1982-07-08(a)(8)(B)

A plaintiff must show that repayment of the student loan would impose an undue hardship on oneself and on one’s dependents.

Section 523(a)(8)(B) allows discharge of a student loan when repayment would impose undue hardship, including severe economic deprivation likely to persist.

Ford v. New York State Higher Education Services Corp. (In Re Ford) · filed 1982-08-16(a)(8)(B)

Because debt- or’s expenses currently exceed her income and she has no prospects for improvement of this situation in the near future, the repayment of her student loan would constitute great economic deprivation and undue hardship. The student loan, therefore, is discharged and it is so ordered.

Section 523(a)(8)(B) permits discharge of a student loan if repayment would impose undue hardship on the debtor and the debtor’s dependents.

Hartung v. University of Akron (In Re Hartung) · filed 1982-12-03(a)(8)(B)

As the standard to be met under 11 U.S.C. Section 523(a)(8) is that of “undue hardship” and as Debtor has failed to show that the repayment of this debt will impose an undue hardship upon her, the student loan debt to the University of Akron is nondischargeable.

Section 523(a)(8)(B) permits discharge of student loans when the debtor proves that repayment would impose undue hardship.

Price v. Bureau of Student Financial Assistance of the Department of Health, Education & Welfare (In Re Price) · filed 1982-12-10(a)(8)(B)

Under the application of the three tests discussed herein, the plaintiff presents a classic picture of an undue hardship case under § 523(a)(8)(B). Although the burden of establishing undue hardship is a heavy one and one which should not be lightly considered by the courts, the plaintiff’s situation carries that burden. The repayment of her debts, based on the student loans owed to defendants would constitute an undue hardship on her and would interfere with her “fresh start” in bankruptcy. As such the debts are discharged under 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8) requires a debtor to prove by a preponderance of the evidence that excluding a student loan from discharge would impose an undue hardship on the debtor and the debtor’s dependents.

Richardson v. Ohio, University of Cincinnati (In Re Richardson) · filed 1983-01-12(a)(8)

Plaintiff has failed to establish by a preponderance of the evidence that excepting her National Direct Student Loan from discharge will impose an undue hardship on the debtor and the debtor’s dependents under 11 U.S.C. § 523(a)(8).

Section 523(a)(8)(B) places the burden of proving undue hardship on the debtor seeking to discharge a student loan.

Financial Collection Agencies v. Norman (In Re Norman) · filed 1982-12-14(a)(8)(B)

Placing the burden of proof on the debtor to show the necessary hardship under Section 523(a)(8)(B) is not contrary to the requirement that the creditor must prove its entitlement to be excepted from the discharge.

Section 523(a)(8)(B) allows a government-insured student loan to be discharged when excepting it from discharge would impose undue hardship on the debtor.

Love v. Department of Health, Education & Welfare (In Re Love) · filed 1983-03-07(a)(8)(B)

1. Excepting from discharge the debts owed by this debtor to Riddell National Bank and insured by the United States of America will impose an undue hardship on the debtor.

Section 523(a)(8)(B) permits discharge of student loan debt when repayment would impose undue hardship on the debtor and the debtor’s dependents.

Carter v. Kent State University (In Re Carter) · filed 1983-04-13(a)(8)(B)

Therefore, it is the conclusion of this Court that the repayment of the student loan debts in question to Kent State University would impose an undue hardship on debtors, Kenneth Norwood Carter and Pheobie Price Carter, and their four minor children. The student loan debts are therefore found to be dischargeable pursuant to 11 U.S.C. Section 523(a)(8)(B).

Section 523(a)(8) permits discharge of student loans when excepting them from discharge would impose undue hardship on the debtor.

Connolly v. Florida Board of Regents (In Re Connolly) · filed 1983-05-31(a)(8)

It is the further conclusion of this Court that to except the student loan debts from discharge in this ease would impose an “undue hardship” on Connolly. Therefore, Connolly’s student loan obligations shall be discharged.

Section 523(a)(8) requires a debtor seeking to discharge a student loan for undue hardship to show extenuating circumstances or an inability to maintain a minimal standard of living.

Betz v. New York State Higher Education Services Corp. (In Re Betz) · filed 1983-07-26(a)(8)

In order to obtain a discharge, therefore, the debtor must demonstrate either extenuating circumstances or that she is unable to earn sufficient income to maintain herself and her dependants at a minimal standard of living. ... Her inability to pay the student loan is at best temporary. Therefore, undue hardship under the Ford test has not been demonstrated. This debt is declared nondischargeable and it is so ordered.

Section 523(a)(8)(B) does not treat hardship caused by an employable debtor’s decision to seek work only in fields for which he trained as undue hardship.

Holzer v. Wachovia Services, Inc. (In Re Holzer) · filed 1983-09-27(a)(8)(B)

If plaintiff wishes to limit his employment search solely to those fields for which he received formal training, he has made an irresponsible decision so to limit himself and, accordingly, any resulting hardship is of his own making, self-imposed, and does not constitute “undue hardship” within the meaning of Code § 523(a)(8)(B).

Section 523(a)(8)(B) requires more than a present inability to repay student loans; undue hardship requires a showing that future repayment is hopeless.

Love v. United States (In Re Love) · filed 1983-10-17(a)(8)(B)

Moreover, “undue hardship” is not based upon a present inability to pay but rather upon a “ ‘certainty of hopelessness’ that future payments cannot be made.” ... Accordingly, the Court cannot find that the debtor’s circumstances are hopeless. ... Accordingly, for all the foregoing reasons, the Court concludes that the debtor is not entitled to a discharge of the three student loans which are the subject of the instant complaint.

Section 523(a)(8)(B) permits discharge of a student loan obligation to the extent repayment would impose an undue hardship.

Kuhns v. Pennsylvania Higher Education Assistance Agency (In re Kuhns) · filed 1983-10-18(a)(8)(B)

IT IS ACCORDINGLY ORDERED, ADJUDGED AND DECREED, that Plaintiff-Debtor’s student loan debt to Defendant-Creditor, to the extent of unpaid principal and interest accrued to the date of Plaintiff-Debtor’s filing of his Chapter 7 Petition, should be excepted from discharge under 11 U.S.C. § 523(a)(8)(B) but the interest accruing upon the debt upon maturity at the end of 10 years constitutes an undue hardship to the extent deferred payments total more than $3,600.00.

Section 523(a)(8)(B) allows discharge of an educational loan if the debt would impose undue hardship on the debtor and the debtor's dependents.

Wells v. PEO. OF ILL. EX REL. ILL. SCHOLARSHIP · filed 1984-02-02(a)(8)(B)

Judge Toles applied 11 U.S.C. § 523(a)(8)(B) which allows discharge of an educational loan if the debt would "impose undue hardship on the debtor and the debtor's dependents." The evidence supports Judge Toles' findings of fact and conclusions of law. They are not clearly erroneous. Therefore, the defendant's appeal is dismissed with prejudice and the finding of the bankruptcy judge that plaintiff's debt to the defendant is discharged is affirmed.

Section 523(a)(8)(B) allows discharge of an educational loan when the debt would impose undue hardship on the debtor and the debtor’s dependents.

Wells v. Illinois ex rel. Illinois State Scholarship Commission · filed 1984-02-02(a)(8)(B)

Judge Toles applied 11 U.S.C. § 523(a)(8)(B) which allows discharge of an educational loan if the debt would “impose undue hardship on the debt- or and the debtor’s dependents.” The evidence supports Judge Toles’ findings of fact and conclusions of law. They are not clearly erroneous.

Section 523(a)(8)(B) places the burden on the debtor to prove undue hardship when seeking to discharge a student loan.

Fitzgerald v. Pennsylvania Higher Education Assistance Agency (In Re Fitzgerald) · filed 1984-07-26(a)(8)(B)

Thus, § 523(a)(8), in conjunction with the legislative history, leads to the conclusion that the debtor bears the burden of proof in asserting that undue hardship is present under § 523(a)(8)(B).

Section 523(a)(8)(B) permits discharge of a student loan when the debtor cannot repay it now or in the foreseeable future and denying discharge would impose an undue hardship on the debtor and dependents.

Cossette v. Higher Education Assistance Foundation (In Re Cossette) · filed 1984-08-01(a)(8)(B)

The Court’s decision in this case is, rather, premised on its findings that Debtor does not have the present ability to repay her student loan obligation, that she has no-reasonable prospect of gaining future ability to repay it, and that denial of discharge would impose an undue hardship upon the Debtor and, more significantly, upon her dependent minor child.

Section 523(a)(8)(B) allows discharge of a student loan when the debtor proves undue hardship through a test examining ability to pay, good faith, and potential abuse of the student loan exception.

Shoberg v. Minnesota Higher Education Coordinating Council (In Re Shoberg) · filed 1984-08-01(a)(8)(B)

If the debtor meets his burden of proof on the three prongs of the test, he is entitled to a discharge of the student loan obligation endorsed and assigned to Inter-venor.

Section 523(a)(8)(B) requires undue hardship to discharge student loans in Chapter 7.

In Re Williams · filed 1984-08-17(a)(8)(B)

Such is not the case, however, because debtor does not meet the “undue hardship” standard of 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans to prove undue hardship; a present inability to pay alone is insufficient.

Panteli v. New York State Higher Education Services Corp. · filed 1984-09-12(a)(8)(B)

The debtor has not met his burden of proving that his obligation to repay his student loans will impose an undue hardship on him within the meaning of 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8) makes a scholarship debt nondischargeable when repayment would not impose undue hardship on the debtor.

In Re Luna · filed 1984-10-16(a)(8)

The Court finds that the debt is non-dischargeable pursuant to 11 U.S.C. § 523(a)(8) of the Federal Bankruptcy Code. ... The Court further finds that payment of this debt will not impose undue hardship on the debtor.

Section 523(a)(8) requires courts to consider the totality of a debtor’s circumstances when deciding whether a student loan creates undue hardship.

Moorman v. Kentucky, Higher Education Assistance Authority (In Re Moorman) · filed 1984-11-07(a)(8)

“Undue hardship” is a concept so fraught with subjective elements that we must consider the totality of a debtor’s circumstances to confirm its presence or absence.

Section 523(a)(8)(B) permits discharge of a student loan when repayment would impose undue hardship on the debtor and the debtor’s dependents.

Smith v. New York State Higher Education Services Corp. (In re Smith) · filed 1985-01-15(a)(8)(B)

The application of the mechanical test indicates that the repayment of the $8,750 student loan debt to NYSHESC would impose an economic deprivation and undue hardship on Mr. Smith and his dependents. This debtor has filed for relief in bankruptcy in good faith and a discharge of his student loan would not violate Congressional policy or represent an abuse of the educational financing programs. Therefore, the student loan obligation to NYSHESC is discharged, and it is so ordered.

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans for undue hardship to show an inability to maintain a minimal standard of living while repaying them, that this condition is likely to persist for a significant portion of the repayment period, and good faith efforts to repay.

Brunner v. New York State Higher Education Services Corp. (In Re Brunner) · filed 1985-02-21(a)(8)(B)

In conclusion, obtaining a discharge of student loans in bankruptcy prior to five years after they first come due requires a three-part showing: 1) that the debtor cannot, based on current income and expenses, maintain a “minimal” standard of living for himself or herself and his or her dependents if forced to repay the loans, 2) that this state of affairs is likely to persist for a significant portion of the repayment period of the student loan, and 3) that the debtor has made good faith efforts to repay the loans.

Section 523(a)(8)(B) requires a debtor seeking to discharge a student loan to prove that repayment will impose undue hardship.

Goldman v. Bank of New York (In Re Goldman) · filed 1985-04-16(a)(8)(B)

The debtor has not met her burden of proving that her obligation to repay her student loans will impose an undue hardship on her within the meaning of 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans for undue hardship to prove that foreseeable resources will not support a minimal standard of living while repaying them.

Erickson v. North Dakota State University (In Re Erickson) · filed 1985-07-18(a)(8)(B)

This test, in essence, requires a showing that the debtor’s financial resources during the foreseeable future will not be sufficient to support the debtor or her dependents at a subsistence or poverty level standard of living, and still be able to repay the loan obligations.

Section 523(a)(8)(B) permits discharge of an educational loan when repayment would impose undue hardship on the debtor.

Elmira College v. Savercool (In Re Savercool) · filed 1985-07-29(a)(8)(B)

The factual setting in the present case clearly indicates that the imposition of the educational loan payments would create severe economic deprivation and undue hardship on Ms. Savercool. Therefore, the educational loan obligation to Elmira College is discharged and it is so ordered.

Section 523(a)(8)(B) permits discharge of a student loan when the debtor proves that repayment would impose undue hardship.

Binder v. United States Department of Education (In Re Binder) · filed 1985-10-28(a)(8)(B)

Accordingly, and for the reasons stated, the Court concludes that the indebtedness of Marlin Binder in the sum of $6,762.64 plus interest at the rate of 7% per annum owing to the United States Department of Education is dischargeable, the Debtor having met the undue hardship standard of section 523(a)(8)(B) of the Bankruptcy Code.

Section 523(a)(8)(B) permits discharge of student loans for undue hardship, assessed in light of the debtors’ circumstances and future ability to pay.

Springer v. Higher Education Assistance Foundation (In Re Springer) · filed 1985-11-21(a)(8)(B)

Considering all of the facts and circumstances surrounding this case, this Court does not believe that it is an undue hardship. ... In conclusion, it is the opinion of the Court that the student loan debts of these debtors are not dischargeable under § 523(a)(8)(B).

Section 523(a)(8)(B) permits discharge of an educational loan when repayment would impose an undue hardship.

Wilcox v. United States (In re Wilcox) · filed 1985-12-27(a)(8)(B)

The Court has concluded that this joint case should be reopened to accord relief to the Debtors as provided by 11 U.S.C. § 350(b), and, further, that the debt of Mrs. Wilcox for the educational loan is dischargeable, as it will impose an undue hardship as provided in 11 U.S.C. § 523(a)(8)(B), and has also concluded that the debt to the Veterans Administration is dischargeable.

Section 523(a)(8) does not discharge an educational loan when the debtor can make payments while maintaining more than a minimal standard of living.

North Dakota State Board of Higher Education v. Frech (In Re Frech) · filed 1986-05-28(a)(8)

So long as Debtor’s net income from future employment remains at a level comparable to that as of the date of trial, the Court concludes that in the near future Debtor will be able to maintain himself at something more than a minimal or “poverty level” standard of living and still meet the scheduled payments suggested by Plaintiff at trial.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show significant difficulty in repaying them; choosing sporadic work while pursuing a career does not establish that hardship.

Maiolini v. Pennsylvania Higher Education Assistance Agency (In Re Maiolini) · filed 1986-06-16(a)(8)

As the present bankruptcy will remove her personal liability for any dischargeable debts, and as her present claim of hardship appears to be as much a matter of choice as it does circumstances, we cannot conclude that this Debtor is suffering from the significant difficulties necessary to reach the condition of “undue hardship”. We therefore find these debts owed for educational loans to be nondischargeable.

Section 523(a)(8)(B) does not permit discharge of an educational loan merely because repayment would cause hardship; the hardship must be undue.

Ballard v. Virginia Ex Rel. State Education Assistance Authority (In Re Ballard) · filed 1986-05-08(a)(8)(B)

Based on the evidence presented, we conclude that although payment of debt may create a hardship, this case is not appropriate for a finding of undue hardship within the meaning of § 523(a)(8)(B).

Section 523(a)(8)(B) permits discharge of an educational loan for undue hardship when the borrower’s financial difficulties leave no hope of improvement over the next ten years.

Marion v. Pennsylvania Higher Education Assistance Agency (In Re Marion) · filed 1986-05-30(a)(8)(B)

This Court has determined that Mr. Marion is not in an “undue hardship” situation. To meet that standard, the difficulties of the borrower must be such that, in looking ten years into the future, there appears no hope of an improved financial picture.

Section 523(a)(8)(B) permits discharge of student loans when repayment would impose an undue hardship on the debtor and the debtor’s dependents.

Turner v. Detroit & Northern Savings (In Re Turner) · filed 1986-12-01(a)(8)(B)

Under the circumstances here, excepting these debts from discharge would clearly impose an undue hardship on them and their dependents.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship when the debtor’s net income is near the federal poverty guideline, or when extraordinary circumstances make repayment unlikely despite higher income.

Bryant v. Pennsylvania Higher Education Assistance Agency (In Re Bryant) · filed 1987-04-30(a)(8)(B)

We hold that, for the purposes of § 523(a)(8)(B), “undue hardship” exists (1) Where the debtor has net income which is not substantially greater than federal poverty guidelines, because a debtor so living perforce is unable to maintain a minimal standard of living and make payments on student loans; or (2) Where the debtor has income substantially above the aforesaid poverty guidelines, but there is a presence of “unique” or “extraordinary” circumstances which render it unlikely that the debtor will be able to repay his or her student loan obligations.

Section 523(a)(8)(B) permits a hardship discharge of an educational loan when a debtor’s disability is permanent or long-term.

In Re Wilson · filed 1987-07-14(a)(8)(B)

A permanent or long-term disability would be grounds for a hardship discharge. However, within several months, the debtor’s medical condition is scheduled for review before the Rhode Island Workers’ Compensation Commission, and a clearer picture of the anticipated duration of the debtor’s disability should emerge after that review. Therefore, the motion for a hardship discharge is denied, without prejudice.

Section 523(a)(8)(B) requires more than ordinary financial difficulty to discharge a student loan; the debtor must lack enough income to maintain a minimum standard of living while repaying it.

Lisanti v. Pennsylvania Higher Education Assistance Agency (In Re Lisanti) · filed 1987-08-13(a)(8)(B)

The “undue hardship” language chosen by Congress signifies that the burden of proof thereon is substantial and should not include general difficulty. Undue hardship is not simply financial burden; it is a presumption that debtors who feel obligated to seek bankruptcy protection are financially burdened. The Court must find that the Debtor’s income is inadequate to both maintain Debtor at a minimum standard of living and allow repayment of the educational loan.

Section 523(a)(8)(B) requires a debtor seeking to discharge an educational loan for undue hardship to prove a present inability to pay and that the debtor’s circumstances will not foreseeably improve over the next ten years.

Carter v. Higher Education Assistance Foundation (In Re Carter) · filed 1987-08-13(a)(8)(B)

Based upon same, we find that in order to discharge an educational loan, Debtor must prove not only present inability to pay, but also that his circumstances will not foreseeably improve over the next ten years.

Section 523(a)(8)(B) excepts student loans from discharge unless the debtor proves that repayment would impose an undue hardship.

Lohman v. Connecticut Student Loan Foundation (In Re Lohman) · filed 1987-09-25(a)(8)(B)

Section 523(a)(8)(B) of the Bankruptcy Code, however, is quite dissimilar. It excepts student loan debts from discharge unless a resulting imposition of “undue hardship” is predictably evident. ... We cannot find debtor’s circumstances to be exceptional or extreme, nor can we find a certainty that repayment of debtor’s student loan obligations would prompt an undue hardship.

Section 523(a)(8)(B) assesses undue hardship through the debtor’s future ability to repay a student loan, considering expected income, expenses, and efforts to maximize resources and minimize expenses.

Courtney v. Gainer Bank (In Re Courtney) · filed 1987-10-05(a)(8)(B)

The Court holds that a simple economic, ability-to-pay in the future test based upon the debtor’s estimated future income and expenses is the standard that should be applied.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship; once the debtor makes a supporting showing, the lender must produce rebuttal evidence.

Alliger v. Pennsylvania Higher Education Assistance Agency (In Re Alliger) · filed 1987-10-05(a)(8)(B)

Once the debtor has made a showing which would support a determination that “undue hardship” exists, the burden of production shifts to the educational loan creditor to present some evidence to rebut the debtor’s case.

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans for undue hardship to show an inability to maintain a minimal standard of living while repaying them, circumstances likely to prolong that hardship, and good faith efforts to repay.

Brunner v. New York State Higher Education Services Corp. · filed 1987-10-14(a)(8)(B)

Based on legislative history and the decisions of other district and bankruptcy courts, the district court adopted a standard for “undue hardship” requiring a three-part showing: (1) that the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for herself and her dependents if forced to repay the loans; (2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) that the debtor has made good faith efforts to repay the loans. For the reasons set forth in the district court’s order, we adopt this analysis.

Section 523(a)(8) permits a hardship discharge of a student loan only when repayment would cause undue hardship.

Garmerian v. Rhode Island Higher Education Assistance Authority (In re Garmerian) · filed 1987-12-11(a)(8)

(4) Her monthly rent, living and clothing expense, yearly IRA contributions, and standard of living generally, leave her with the ability to pay the debt in question without suffering undue hardship, within the meaning of 11 U.S.C. § 523(a)(8).

Section 523(a)(8) does not discharge student loans for undue hardship based solely on present unemployment when the debtor is capable of gainful employment.

Connor v. State of Michigan Department of Treasury (In Re Connor) · filed 1988-03-15(a)(8)

Finally, we also find that the debtor has shown a lack of good faith in never having even attempted to pay back any portion of her loan while gainfully employed. Because we find this debtor capable of gainful employment, we refuse to make a finding of “undue hardship” based solely on her present inability to find employment. We hold then, that the debt- or’s discharge did not encompass her obligation to the defendant on account of the student loans.

Section 523(a)(8)(B) requires courts to consider the debtor’s ability to repay, good faith, and the policy behind student loan repayment when deciding undue hardship.

Conner v. Illinois State Scholarship Commission (In Re Conner) · filed 1988-08-02(a)(8)(B)

This Court believes that the better approach is to use all three tests in combination in determining whether a student loan should or should not be discharged on undue hardship grounds.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship, assessed through the debtor’s financial resources, expenses, and good-faith efforts to repay.

Pendergrast v. Student Loan Servicing Center (In Re Pendergrast) · filed 1988-08-29(a)(8)(B)

A determination of whether or not a student loan should be discharged because of undue hardship requires an analysis of a debtor’s financial resources, his present and future expenses and whether he has made a good faith attempt to repay the loan. ... Upon consideration of the testimony adduced at trial and the briefs and memorandum filed by the parties in this case, we find that the prequisites of a hardship discharge pursuant to § 523(a)(8)(B) have not been met. We, therefore, find that the debt owed to the defendant by the debtor is nondischargeable.

Section 523(a)(8)(B) does not discharge student loans when the debtor fails to prove that repayment would impose an undue hardship.

Maschka v. Nebraska Higher Education Loan Programs (In Re Maschka) · filed 1988-08-30(a)(8)(B)

The court finds that debtor has not proved that repayment of the student loans would impose an undue hardship. In fact, she has excess income with which to make payment. These loans are held to be not dischargeable under 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) excepts student loans from discharge unless the debtor proves that repayment would impose undue hardship.

Childs v. Higher Education Assistance Foundation (In Re Childs) · filed 1988-08-30(a)(8)(B)

Mr. Childs has not convinced the court that he will never be able to repay these loans. Therefore, the court finds that the debtor’s student loans are not dischargeable under 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires long-term undue hardship to discharge a student loan; ordinary financial difficulty does not suffice.

Cahill v. Norstar Bank of Upstate New York (In Re Cahill) · filed 1988-10-03(a)(8)(B)

Hardship that is “undue” so as to allow the dischargeability of a student loan must be long-term and does not include a “garden-variety hardship” or “unpleasantness.”

Section 523(a)(8)(B) does not permit discharge of a student loan based on a temporary inability to pay when the debtor can reasonably expect to earn more.

Strauss v. United States (In Re Strauss) · filed 1988-10-20(a)(8)(B)

Generally, mere inability to pay is not a sufficient basis to permit discharge-ability pursuant to Section 523(a)(8), because financial uncertainty exists to some degree in every Chapter 7. case. ... His present economic situation is a temporary hardship which will improve through his continued efforts to obtain steady employment.

Section 523(a)(8)(B) generally denies discharge of a student loan for undue hardship when the debtor has a present or future ability to repay it.

Gilchrist v. Department of Education · filed 1988-12-30(a)(8)(B)

In general, the debtor is denied discharge if he has present or future ability to repay his loan. ... Under either standard, the record demonstrates that appellant has failed to show that excepting his educational debt from discharge would impose "undue hardship."

Section 523(a)(8)(B) does not permit discharge of an educational loan when repayment would cause financial difficulty that falls short of undue hardship.

Taylor v. Tennessee Student Assistance Corp. (In Re Taylor) · filed 1989-01-13(a)(8)(B)

Nonetheless, the court finds that the financial difficulty engendered, should the defendant seek repayment of the loans from the debtor, does not rise to the level of “undue hardship” contemplated by § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor seeking to discharge a student loan for undue hardship to show a great present repayment burden and no foreseeable improvement in circumstances over the repayment period.

Bey v. Dollar Savings Bank (In Re Bey) · filed 1989-01-25(a)(8)(B)

Therefore, Debtor must not only prove that repayment would be a great burden at the time of the bankruptcy, but must also show that her circumstances will not foreseeably change for the better over the next 10 years.

Section 523(a)(8) requires courts assessing undue hardship to consider a debtor’s long-term prospects, not just immediate circumstances.

Cardwell v. Higher Education Assistance Foundation (In Re Cardwell) · filed 1989-01-26(a)(8)

It must be remembered that the Court in considering the issue of undue hardship, is required to consider the long term prospects of the applicants, not merely the short term or immediate conditions.

Section 523(a)(8)(B) calls for a case by case assessment of the debtor’s total circumstances when deciding whether repaying a student loan would impose undue hardship.

Coleman v. Higher Education Assistance Foundation (In Re Coleman) · filed 1989-03-27(a)(8)(B)

Rigid adherence by the court to a particular test robs the court of the discretion envisioned by Congress in drafting § 523(a)(8)(B). The court finds that the more equitable approach is to view each case in the totality of circumstances involved.

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans for undue hardship to satisfy all three parts of the hardship test, including good faith efforts to repay.

Harris v. Pennsylvania Higher Education Assistance Agency (In Re Harris) · filed 1989-06-28(a)(8)(B)

The three prongs of the Second Circuit’s undue hardship test are conjoined, so that absent a showing by the debtor of good faith efforts to repay her student loans, the debt may not be discharged, even where the debtor is unable to maintain a minimal standard of living.

Section 523(a)(8)(B) requires a debtor seeking to discharge a student loan for undue hardship to show that repayment would leave insufficient resources for subsistence in the foreseeable future.

Burton v. Pennsylvania Higher Education Assistance Agency (In Re Burton) · filed 1990-07-15(a)(8)(B)

Debtor has failed to meet his burden of proof with respect to the “mechanical” test for determining undue hardship. As a result, he is not entitled to a discharge with respect to his student loans. Further analysis is not required.

Under § 523(a)(8)(B), a present inability to repay student loans does not establish undue hardship when the debtor’s inability is self-imposed and the bankruptcy was filed primarily to discharge those loans.

Boston v. Utah Higher Education Assistance Authority (In Re Boston) · filed 1990-08-02(a)(8)(B)

This bankruptcy case was filed primarily to discharge the educational loan debts. Even though the debtor is currently unable to repay her educational loan debts, her inability to repay the debts is self-imposed. Based on the Johnson tests, the debtor’s educational loan debts are, therefore, found to be nondischargeable.

Section 523(a)(8)(B) requires more than ordinary hardship to discharge a student loan.

Foreman v. Higher Education Assistance Foundation (In Re Foreman) · filed 1990-08-29(a)(8)(B)

The statute refers to undue hardship and the mere fact that repayment of an educational loan imposes a hardship is insufficient to permit discharge of the loan.

Section 523(a)(8) permits discharge of an educational loan when paying it would prevent the debtor from maintaining a minimal standard of living; the federal poverty level is one factor in that determination.

Education Resources Institute, Inc. v. Lekowicz (In re Lekowicz) · filed 1990-09-19(a)(8)

The proper standard is whether a debtor’s income is adequate to maintain a minimal standard of living and to pay the educational loan.

Section 523(a)(8)(B) excepts student loans from discharge when the debtor fails to prove that repayment would impose undue hardship.

Simons v. Higher Education Assistance Foundation (In Re Simons) · filed 1990-09-24(a)(8)(B)

The Court concludes that the Debtors’ have failed to meet their burden of proving undue hardship, pursuant to § 523(a)(8), and thus the student loan obligations owed to the Foundation are determined to be exceptions to the Debtors’ discharge.

Section 523(a)(8)(B) requires a debtor seeking an undue-hardship discharge of student loans to show a good faith effort to repay them.

Garneau v. New York State Higher Education Services Corp. (In Re Garneau) · filed 1990-12-20(a)(8)(B)

The failure to show a good faith effort to repay the loans requires the Court to deny the discharge of those loans.

Section 523(a)(8)(B) permits discharge of a guaranteed student loan when repayment would impose undue hardship, considering the debtor’s ability to pay, good faith, and the provision’s policy.

Clinton v. Great Lakes Higher Education Corp. (In Re Clinton) · filed 1991-03-20(a)(8)(B)

Section 523(a)(8) of title 11 excepts from discharge an educational loan guaranteed by a governmental unit. ... Based upon the mechanical test, plaintiffs income, including overtime pay, does not permit repayment of the loan in issue. ... The court finds, then, that the debt in issue should be discharged.

Section 523(a)(8)(B) places the burden on a debtor seeking to discharge student loans to prove undue hardship.

Zibura v. Academic Financial Services Ass'n (In Re Zibura) · filed 1991-05-29(a)(8)(B)

Consequently, the burden is upon debtor to prove “undue hardship” if he is to prevail in this action. ... Mr. Zibura has failed to meet his burden of proof. To begin with, he has not satisfied the “mechanical” test described previously.

Section 523(a)(8)(B) requires long-term hardship to discharge a student loan; a temporary inability to pay is insufficient.

Cadle Co. v. Webb (In Re Webb) · filed 1991-10-10(a)(8)(B)

It is well settled that the basis of hardship must be long-term in order for the Court to find dischargeability under § 523(a)(8).

Section 523(a)(8)(B) allows a student loan to be discharged for undue hardship, which the court evaluates using the debtor’s finances, good faith, and relevant policy considerations.

Bakkum v. Great Lakes Higher Education Corp. (In Re Bakkum) · filed 1992-01-07(a)(8)(B)

This Court believes the combination of all three tests should be used in determining whether a student loan should or should not be discharged on undue hardship grounds.

Section 523(a)(8)(B) requires a showing of undue hardship before a student loan can be discharged, even when the parties agree to discharge it.

Garcia v. Higher Education Assistance Foundation (In Re Garcia) · filed 1992-01-10(a)(8)(B)

Where there is no showing that the debtor will in fact suffer an “undue hardship” by virtue of having to repay the student loan, the Court cannot in good conscience declare the debt dischargeable, even where the parties have agreed to the discharge of the obligation.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship when the debtor fails the mechanical test and satisfies the good faith test; the analysis ends without reaching the policy test.

Roberson v. Illinois Student Assistance Commission (In Re Roberson) · filed 1992-04-07(a)(8)(B)

It is evident that if, under the Johnson test, a court finds the debtor to have undue hardship under the mechanical test and has satisfied the good faith test, its analysis should end at that point.

Section 523(a)(8)(B) requires more than a tight budget or present inability to pay to establish undue hardship; the court considers the totality of circumstances.

Claxton v. Student Loan Marketing Ass'n (In Re Claxton) · filed 1992-05-19(a)(8)(B)

Therefore, this Court will except this educational loan from discharge, unless debtors can show something more than “a tight budget or a present inability to pay;” but this “something more” cannot be reduced to rigid rule or simple formula, but depends on “the totality of circumstances involved” in light of Congressional intent and policies in administering both bankruptcy relief and the student loan program.

Section 523(a)(8)(B) permits a court to discharge part of a student loan when requiring repayment of the full amount could impose undue hardship.

Silliman v. Nebraska Higher Education Loan Program (In Re Silliman) · filed 1992-06-04(a)(8)(B)

However, the Court may determine that equity dictates reducing the amount of the nondischargeable debt, if the Court determines that undue hardship could result from requiring the Debtor to pay the entire amount. ... It is FURTHER ORDERED that all of the remainder of the Debtor’s educational loans and all interest be, and are hereby, held to be DISCHARGEABLE under 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) leaves education loans nondischargeable when the debtor fails to prove that repayment would impose undue hardship.

Koch v. Pennsylvania Higher Education Assistance Agency (In Re Koch) · filed 1992-09-03(a)(8)(B)

Because debtor fails to meet the “mechanical” test, the “good faith” test, and the “policy” test, the court denies discharge of his education loans. Debtor has not shown that he falls within the “undue hardship” exception of § 523(a)(8)(B).

Section 523(a)(8)(B) allows a student loan to be discharged when excepting it from discharge would impose undue hardship on the debtor.

Malloy v. United States (In Re Malloy) · filed 1992-08-26(a)(8)(B)

Applying this law to those facts, we conclude the debts are dischargeable in bankruptcy, an undue hardship by a preponderance of the evidence and not to discharge the Federal debt would be unconscionable, shockingly unfair, harsh or unjust.

Section 523(a)(8)(B) requires a court assessing undue hardship from student loan repayment to consider the income of a debtor’s spouse.

Ipsen v. Higher Education Assistance Foundation (In Re Ipsen) · filed 1992-12-29(a)(8)(B)

In determining whether to discharge a student loan based on undue hardship, the income of the non-debtor spouse should be considered by the court.

Section 523(a)(8)(B) leaves a student loan nondischargeable when the debtor can support herself at a subsistence level while repaying it.

Myers v. Pennsylvania Higher Education Assistance Agency (In Re Myers) · filed 1993-02-04(a)(8)(B)

Debtor has failed to meet the “mechanical” test. She has not shown that her financial resources will be inadequate in the foreseeable future to enable her to support herself at a subsistence level while repaying her student loans. ... The education loan is nondischargeable because debtor fails to meet the “mechanical” test.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship without requiring physical or mental incapacity; courts must assess future financial resources realistically.

Vaughn v. Illinois State Scholarship Commission · filed 1993-02-08(a)(8)(B)

Physical and mental incapacity are not sine qua non in determining undue hardship, and speculation about future earnings from a mythical job is equally inappropriate. The mechanical test does consider the debtor’s “future financial resources,” but in a realistic sense and not in the context used by the bankruptcy court.

Section 523(a)(8)(B) requires more than present financial adversity to establish undue hardship, especially when the debtor has not made her best efforts to improve her finances.

Ford v. Tennessee Student Assistance Corp. (In Re Ford) · filed 1993-02-10(a)(8)(B)

However, as previously mentioned, the fact that the Debtor suffers present financial adversity is insufficient in and of itself to support a finding of undue hardship, especially when the proof demonstrates the Debtor is not using her best efforts to improve her financial situation.

Section 523(a)(8)(B) requires debtors whose gross income is significantly above the federal poverty guideline to show unique or extraordinary circumstances to discharge student loans for undue hardship.

Reyes v. Oklahoma State Regents for Higher Education (In Re Reyes) · filed 1993-06-23(a)(8)(B)

This Court finds that the Plaintiffs’ combined gross income of $23,529.60 is significantly above the Federal Poverty Guidelines for a family of six of $19,270.00. Therefore, this Court must find unique or extraordinary circumstances in order to find that excepting these debts from discharge would create an undue hardship on Debtors and their dependents despite their level of income.

Section 523(a)(8)(B) requires a debtor seeking discharge of student loans for undue hardship to show that the financial hardship is likely to persist for a significant portion of the repayment period.

In the Matter of Jerry L. Roberson, Debtor. Appeal of Illinois Student Assistance Commission · filed 1993-07-20(a)(8)(B)

The second prong of the Brunner test properly recognizes the potential continuing benefit of an education, and imputes to the meaning of “undue hardship” a requirement that the debtor show his dire financial condition is likely to exist for a significant portion of the repayment period.

Section 523(a)(8)(B) permits discharge of a student loan when repayment would leave the debtor living at a subsistence level.

Fox v. Pennsylvania Higher Education Assistance Agency (In Re Fox) · filed 1993-08-18(a)(8)(B)

This Court finds that living at subsistence level would normally be an undue hardship requiring a discharge of any attendant student loan.

Section 523(a)(8)(B) permits discharge of a student loan when repayment would impose undue hardship, assessed in light of the debtor’s circumstances, repayment efforts, and financial prospects.

Law v. Educational Resources Institute, Inc. (In Re Law) · filed 1993-10-12(a)(8)(B)

To require a $20,000 student loan be repaid over twenty years in exchange for having received the equivalent of two-and-a-half weeks of useless training would, in this Court’s opinion, create an “undue hardship” for both Debtor and his co-signing parents.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show good faith efforts to repay; a search limited to jobs in the debtor’s chosen field may be insufficient.

Kraft v. New York State Higher Education Services Corp. (In Re Kraft) · filed 1993-09-21(a)(8)

This Court knows not what the future is likely to hold for Ms. Kraft (the second prong of the Brunner test), but it holds that her 11 U.S.C. § 523(a)(8) complaint was filed too soon. She cannot demonstrate “good faith.”

Section 523(a)(8)(B) permits a court to discharge the portion of a student loan that would impose undue hardship while leaving a manageable portion nondischargeable.

Woyame v. Career Education & Management (In Re Woyame) · filed 1993-09-29(a)(8)(B)

Based on these factors, the Court finds that Eight Thousand Eight Hundred Seventy-two and 73/100 Dollars ($8,872.73) of Plaintiffs Eleven Thousand One Hundred Fifty-seven and 73/100 Dollars ($11,157.73) consolidated debt should be held Nondischargeable. The remainder, Two Thousand Two Hundred Eighty-five and 00/100 Dollars ($2,285.00), should be discharged as imposing undue hardship pursuant to 11 U.S.C. 523(a)(8).

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans for undue hardship to show an inability to maintain a minimal standard of living while repaying them, circumstances likely to prolong that hardship, and good faith efforts to repay.

Healey v. Massachusetts Higher Education (In Re Healey) · filed 1993-11-28(a)(8)(B)

This Court agrees with those courts which have embraced the three-prong test set forth by the Second Circuit in Brunner and hereby adopts this standard for determining “undue hardship” under 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) permits discharge of student loans when repayment would impose undue hardship on the debtor and a dependent.

Kearney v. Nebraska Student Loan Program, Inc. (In Re Kearney) · filed 1993-12-02(a)(8)(B)

Accordingly, the Court rules that debtor has established that the repayment of the student loan obligations would impose an undue hardship on her and on her dependent. Debtor is granted a discharge from her indebtedness to the defendant under 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor to prove undue hardship to discharge an educational loan; limited discretionary spending alone does not establish it.

Phillips v. Great Lakes Higher Education Corp. (In Re Phillips) · filed 1993-12-21(a)(8)(B)

Although payment of the loan may limit the Debtor’s other discretionary spending in the future, the Debtor has not provided proof that payment of the Loan would represent an “undue hardship”.

Section 523(a)(8)(B) requires a debtor to prove undue hardship to discharge a student loan that would otherwise be excepted from discharge.

Wardlow v. Great Lakes Higher Education Corp. (In Re Wardlow) · filed 1993-12-27(a)(8)(B)

For all the above reasons, I find that Mrs. Wardlow has not proven that a failure to discharge her student loan obligations would impose an undue hardship on her or her dependents. As such, the debt is nondischargeable.

Section 523(a)(8)(B) permits discharge of student loans when repayment would impose an undue hardship, which the debtor must establish under all three parts of the Brunner test.

O'Brien v. Household Bank FSB (In Re O'Brien) · filed 1994-01-10(a)(8)(B)

The circumstances of this case satisfy all three prongs of the Brunner test, and I find that requiring debtor to repay these student loans would impose an undue hardship on debtor. Thus, the student loans are a dischargeable debt in this bankruptcy pursuant to 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor seeking to discharge a student loan for undue hardship to show that current financial hardship is likely to persist; expected higher earnings can defeat that showing.

Lynn v. Diversified Collection Service (In Re Lynn) · filed 1994-02-18(a)(8)(B)

Because the Debtor expects to be earning increased wages when she graduates, the Debtor is unable to sustain her burden of proof that her present financial condition is likely to persist for an extended period of time, such that her student loan obligation should be discharged.

Section 523(a)(8)(B) permits discharge of a student loan when the debtor proves that repayment would impose undue hardship.

Mae v. Plotkin (In Re Plotkin) · filed 1994-02-24(a)(8)(B)

Based upon these unique facts, the Court finds that the debtor has met her burden of demonstrating that the student loan debts held by defendants are dischargeable pursuant to Bankruptcy Code section 523(a)(8)(B).

Section 523(a)(8)(B)'s undue hardship inquiry considers whether the debtor sought administrative remedies offered by student loan creditors.

Bethune v. Student Loan Guarantee Foundation (In Re Bethune) · filed 1994-03-04(a)(8)(B)

The Court adopts as a factor to be considered in this test whether the debtor has made any effort to pursue any administrative remedies offered by the student loan creditors.

A debtor seeking to discharge student loans for undue hardship must prove all three parts of the Brunner test by a preponderance of the evidence.

Sands v. United Student Aid Funds, Inc. (In Re Sands) · filed 1994-03-31(a)(8)(B)

If the Debtor fails to show by a preponderance of the evidence that he satisfies all three parts of the Brunner analysis, then he does not satisfy the undue hardship standard of § 523(a)(8)(B) and this court may not discharge the Debtor’s student loans.

Section 523(a)(8)(B) requires a debtor seeking an undue hardship discharge of student loans to show inadequate current income and no future prospect of repayment.

Mathews v. Higher Education Assistance Foundation (In Re Mathews) · filed 1994-04-28(a)(8)(B)

Before she qualifies for the hardship discharge under 11 U.S.C. § 523(a)(8)(B) the debtor must show that not only is her current income inadequate, but that there is no future prospect of repayment.

Section 523(a)(8)(B) permits discharge of student loan debt when repayment would impose an undue hardship on the debtor and his dependents.

Cooper v. Nebraska Student Loan Program, Inc. (In Re Cooper) · filed 1994-05-24(a)(8)(B)

The Court finds that repayment of the student loans would impose an undue hardship on the debtor and his dependents and grants debtor a discharge of the student loan indebtedness under 11 U.S.C. § 523(a)(8)(B).

Under § 523(a)(8)(B), a debtor must prove each element of undue hardship by a preponderance of the evidence to discharge student loans.

Raymond v. Northwest Education Loan Ass'n (In Re Raymond) · filed 1994-06-24(a)(8)(B)

The debtor must prove each of the foregoing elements by a preponderance of the evidence. The Court finds that the debtor here has not met his burden.

Section 523(a)(8)(B) permits discharge of an educational loan when repayment would impose undue hardship on the debtor and her family.

Dillon v. Virginia State Education Authority (In re Dillon) · filed 1994-06-29(a)(8)(B)

The Court, having reviewed all the evidence, finds and concludes that it would work an undue hardship on this Debtor and her family under 11 U.S.C. § 523(a)(8)(B) if the repayment of the said loan should be ordered by this Court. Therefore, the loan will be adjudged dischargeable.

Section 523(a)(8)(B) permits discharge of student loans when repayment would impose undue hardship on the debtor and the debtor’s dependents.

Lindberg v. American Credit & Collection, Student Loan Servicing Center (In Re Lindberg) · filed 1994-07-28(a)(8)(B)

For these reasons, the Court finds that the debtors have carried their burden of proving that excepting these student loan obligations from discharge would render an undue hardship on the debtors and their dependents.

Section 523(a)(8)(B) permits discharge of student loans when repayment would impose an undue hardship on the debtor and the debtor's dependents.

In Re Dallas R. Cheesman Margaret J. Cheesman, Debtors. Dallas R. Cheesman Margaret J. Cheesman v. Tennessee Student Ass · filed 1994-08-04(a)(8)(B)

We agree with the bankruptcy court's holding that the Cheesmans' student loans were dischargeable pursuant to Sec. 523(a)(8)(B).

Section 523(a)(8)(B) does not discharge a student loan when the debtor’s education and earning prospects defeat a claim of undue hardship.

Stevens Institute of Technology v. Joyner (In Re Joyner) · filed 1994-08-10(a)(8)(B)

The Debtor therefore is not entitled to a discharge of her student loan obligation in issue pursuant to 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires exceptional circumstances making repayment unlikely before a student loan may be discharged for undue hardship.

Wilson v. Missouri Higher Ed. Loan Authority (In Re Wilson) · filed 1994-08-17(a)(8)(B)

In accordance with the conclusions reached by the Court with regard to the above factors, this Court finds that the debtor’s predicament does not rise to the level of a “certainty of hopelessness” required for discharge. The debtor has chosen to not seek employment in order to remain at home and raise her child. While this decision is commendable, the Court does not believe that it falls within the narrow exception carved out in § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor seeking a student loan hardship discharge to show that an inability to repay will persist for a significant portion of the repayment period.

Stebbins-Hopf v. Texas Guaranteed Student Loan Corp. (In Re Stebbins-Hopf) · filed 1994-09-29(a)(8)(B)

This Court concludes, therefore, that the second prong of the test is not met, and thus this Court holds that the Debtor has failed to establish that her circumstances warrant a hardship discharge pursuant to section 523(a)(8)(B) of the Bankruptcy Code.

Section 523(a)(8)(B) permits discharge of a student loan for undue hardship when the debtor cannot both maintain a minimum standard of living and repay the loan.

Singleton v. Chase Manhattan Bank, N.A. (In Re Singleton) · filed 1994-10-11(a)(8)(B)

Undue hardship, sufficient to warrant discharge of a student loan, is not simply financial burden. The Court must find that the debtor’s income is inadequate to both maintain a minimum standard of living and allow repayment of the educational loan.

Section 523(a)(8) requires a long-term inability to repay student loans to establish undue hardship; a temporary loss of income is insufficient.

Barrows v. Illinois Student Assistance Commission (In Re Barrows) · filed 1994-10-17(a)(8)

The inability to pay which can constitute undue hardship must be long-term and not simply a temporary loss of income.

Section 523(a)(8)(B) requires a debtor to prove undue hardship to discharge an otherwise nondischargeable educational loan.

Daugherty v. First Tennessee Bank (In Re Daugherty) · filed 1994-12-28(a)(8)(B)

In sum, the debtor has not met her burden of proof with respect to the § 523(a)(8)(B) “undue hardship” issue and the court finds her obligations to the Bank to be nondis-chargeable.

Section 523(a)(8) allows discharge of a nonprofit-funded apprenticeship training loan when repayment would impose undue hardship on the debtor and dependents.

Plumbers Joint Apprenticeship & Journeyman Training Committee v. Rosen (In Re Rosen) · filed 1995-02-09(a)(8)

For the reasons set forth above, I determine that the debt the debtor owes the plaintiff is a debt for an educational loan made under a program funded by a nonprofit institution. Nevertheless, I find that excepting the debt from discharge would impose an undue hardship on the debtor and his dependents. The debtor, therefore, is entitled to a judgment that the debt is dischargeable.

Section 523(a)(8)(B) does not permit discharge of an educational loan when the debtor’s financial hardship is temporary rather than permanent.

Phelps v. Hemar Insurance Corp. of America (In Re Phelps) · filed 1995-03-17(a)(8)(B)

Based on the record in this proceeding to date, we find that this is not a permanent hardship situation, but rather one where the Debtor is suffering temporary financial stress. To allow the discharge of this educational loan obligation at this time would violate both the letter and spirit of 11 U.S.C. § 523(a)(8)(B).

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans for undue hardship to show an inability to maintain a minimal standard of living, hardship likely to persist, and good faith efforts to repay.

Garrett v. New Hampshire Higher Education Assistance Foundation (In Re Garrett) · filed 1995-04-04(a)(8)(B)

Under section 523(a)(8)(A) & (B), Garrett must show undue hardship in order to have these loans discharged. ... “[u]ndue hardship” requir[es] a three-part showing (1) that the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for [himself] and [his] dependents if forced to repay the loans; (2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) that the debtor has made good faith efforts to repay the loans. ... The Court now adopts this three-part test.

Section 523(a)(8) requires a court assessing undue hardship in Chapter 13 to consider the debtor’s circumstances as they would appear in Chapter 7; Chapter 13 plan payments alone do not establish an ability to repay student loans.

Goranson v. Pennsylvania Higher Education Assistance Agency (In Re Goranson) · filed 1995-05-26(a)(8)

The Court today rules that a debtor should neither be penalized nor aided by the fact that some of her payments are being made through a Chapter 13 Trustee. Proper hardship analysis requires reference to the Chapter 7 analogue to the present Chapter 13 circumstances of the debtor.

Section 523(a)(8)(B) permits a pro rata partial discharge of educational loans to the extent repayment would impose undue hardship.

Raimondo v. New York State Higher Education Services Corp. (In Re Raimondo) · filed 1995-06-16(a)(8)(B)

The answer to these potential contradictions is an interpretation of subdivision (B) of section 523(a)(8) which permits the discharge, on a pro rata basis, of only that portion of the outstanding educational indebtedness which exceeds an amount that the debtor can pay without undue hardship.

Section 523(a)(8) does not authorize a bankruptcy court to revise a student loan repayment schedule.

Hawkins v. Buena Vista College (In Re Hawkins) · filed 1995-06-29(a)(8)

The language of 11 U.S.C. § 523(a)(8) does not authorize the court to fashion a repayment schedule for student loans.

Section 523(a)(8)(B) requires a debtor seeking to discharge student loans to show undue hardship; present hardship may be insufficient when repayment may become feasible during the loan period.

Walcott v. USA Funds, Inc. (In Re Walcott) · filed 1995-08-25(a)(8)(B)

Based on all the facts and a review of the case law, the court concludes that the repayment of her student loans is not an undue hardship. While the repayment of these loans may impose a hardship on the debtor now, it is not “undue,” nor will it necessarily continue for the entire repayment period of these loans.

Section 523(a)(8)(B) requires a debtor to satisfy all three parts of the Brunner undue hardship test to discharge a student loan.

Halverson v. Pennsylvania Higher Education Assistance Agency (In Re Halverson) · filed 1995-09-26(a)(8)(B)

In order for Mr. Halverson to prevail he must satisfy all three parts of the Brunner test.

Section 523(a)(8)(B) uses the three-part Brunner test to determine whether repaying student loans would impose an undue hardship.

Ammirati v. Nellie Mae, Inc. (In Re Ammirati) · filed 1995-09-28(a)(8)(B)

This court adopts the three-part Brunner standard employed by the Bankruptcy Court to determine whether a debtor has demonstrated that failure to discharge his student loans would constitute an undue hardship under § 523(a)(8)(B) of the Bankruptcy Code.