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Judge Discharges Law Student Loan Debt in Bankruptcy

Posted Jan 23, 2020

A New York bankruptcy judge has ruled that over $220,000 in student loan debt of law school graduate Kevin Jared Rosenberg was dischargeable under chapter 7 bankruptcy. Student loan debt, unlike other forms of debt, is usually not dischargeable in bankruptcy. An exception to nondischargeability is undue hardship, as set forth in the 1987 opinion Brunner v. N.Y. State Higher Educ. Servs. Corp. In her opinion , Chief Bankruptcy Judge Cecilia G. Morris states that cases following Brunner have set out “punitive standards,” which have “subsumed the actual language of the Brunner test,” making it “a quasi-standard of mythic proportions so much so that most people (bankruptcy professionals as well as lay individuals) believe it impossible to discharge student loans.” A Navy veteran, Rosenberg practiced as an attorney for a short time after law school, and for the last ten years has owned a business as an outdoor tour guide. See JD Supra, Forbes, Inside Higher Ed.