KANSAS CITY, Mo., Aug. 20, 2013 /PRNewswire/ — The United States Bankruptcy Court for the Western District of Missouri entered an Order on May 29, 2013 approving a settlement for a Missouri woman owing more than $400,000.00 in student loans. Per the settlement the woman is entitled to receive a bankruptcy discharge of up to $325,000.00 of student loans.
The holders of the student loan debt were Suntrust Bank and Educational Management Corp. Our client agreed to a repayment schedule of approximately 25% of the balance over a ten (10) year period of time. Upon successful completion of the partial repayment, the entire balance will be discharged.
Neil Sader and Megan Dennis of The Sader Law Firm represented this client. Sader stated, “While student loans generally are not dischargeable in bankruptcy, there is a hardship provision which can be used in certain deserving circumstances.” The client in this case was 50 years old and incurred the majority of the debt while she obtained her chiropractic degree in the 1990s. She later incurred additional debt by trying to help her children with their school expenses. The pleadings also stated that she continued with her schooling, thereby incurring more debt, in order to increase her earnings so she could repay her loans. Megan Dennis stated “what set this case apart were two factors: the client could not even pay the increasing monthly interest on the balance due and she had some physical limitations that imperiled her future earning ability.”
She was employed in a professional capacity at the time of the filing. Sader, who is certified as a Consumer Bankruptcy Law specialist by the American Board of Certification, commented “this was one of the largest student loan discharge cases I have seen, and even heard of, in my career of almost 30 years. It is vital to let those suffering from student loan problems, and those that care about them, know that bankruptcy discharges are possible in the right circumstance.”
The Sader Law Firm is located in Kansas City, Missouri and practices consumer and business bankruptcy law throughout the states of Missouri and Kansas. The Firm and its members are available to answer questions about this case and other potential cases where bankruptcy might be an answer for a student loan problem. For further information, please contact The Sader Law Firm at 816-281-6349 or email [email protected].
SOURCE: Sader Law Firm