Expert: Terry Leeders - 1/21/2010

Question
Good afternoon, Back in the summer of 2008 I was asked to leave my college because of tuition debt (tuition/room and board/fees not student loan debt);I owe over 8 thousand dollars. I spoke with an attorney this afternoon and he asked me if I had signed a promissory note. I told him that I didn't remember because it was nearly four years ago, but he said that it didn't matter.However, I read that if I did sign, my tuition debt would be considered a "student loan" and the case would be dimissed. I am really confused, would you happen to know anything about this situation.  

Answer
Educational debt is non-dischargeable in a bankruptcy case, absent a showing of undue hardship (which is extremely difficult to prove.) Therefore, you would need to work out a payment arrangement with the lender.  It doesn't make a difference if it was tuition, room and board etc, all educational debts fall in this category.