Expert: Terry Leeders - 5/31/2007

Question
Hello, I would like to know if an outstanding debt at my previous schooling(davenport university)can be erased? I tried to get my transcripts so I can continue my education elsewhere but they said I couldn't because I owed them. I was not aware that I owed them. I am currently going through a seperation/divorce and am planning on moving out of state soon. I was hoping to start school again this fall but now I may not be able to due to this outstanding debt. I filed bankruptsy after I accured this debt and it is not a student loan. Can I still claim this on my bankruptsy?

Answer
Under bankruptcy, student loans and educational debts of any kind are presumed non-dischargable.  The only exception is if you can show that it is an undue hardship to pay them back.  In Illinois, the Brunner case sets out the threshold requirements:
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.
So, this is an extremely hard standard to beat.