Kevin J. Bambury, attorney, Jeffrey Freedman Attorneys, PLLC., recently spoke at the 2018 Batavia Bankruptcy Conference of the Erie and Monroe County Bar Associations. Attorneys, paralegals and support staff attended the seminar regarding the status of student loan debt in bankruptcy.
“The law is very delineated on the matter of student loans in bankruptcy,” Bambury said. “It does not allow the discharge of student loans unless the debtor and the debtor’s dependents would be under undue hardship if the debtor has to continue making payments.”
Bambury addressed the two main issues attorneys may have to handle while filing bankruptcy claims for clients with student loan debt: whether payment of the student loans imposes undue hardship on the debtor; and whether the funds obtained by the debtor were used for educational expenses at an accredited institution.
“If the school was not an accredited institution and the debtor did not use the funds for qualified educational expenses, the debt should be dischargeable,” Bambury said.
The presentation included a discussion of several cases involving debtors who were trying to get relief from student loans. Bambury has been handling bankruptcy cases for Jeffrey Freedman Attorneys, PLLC, for more than 20 years. Jeffrey Freedman Attorneys, PLLC, has been assisting clients in Buffalo and Rochester with Bankruptcy, Social Security Disability and Supplemental Security Income, Veterans Disability and long-term disability, employment discrimination, personal injury and other consumer issues for more than 38 years.