HELP! Clock is Ticking -- ADVERSARY PROCEEDING!!!

[TurnThePage]

Originally Posted by jadams

You're missing the part of the Income Based Repayment where the balance due is forgiven, after a certain period in the plan (25 years, if I recall correctly).

If I were the judge, I may ask how a $0 payment poses an undue hardship.

Hi jadams:

Don't forget the Tax Liability on the discharged amount, too. Hence, not only is it unrealistic to keep a student loan on the books for years & years with $0 payments, with the balance growing larger and larger, but "undue hardship" still exists when it is written off outside of Bankruptcy!

[HHM]

Well, if you are going to go it alone and merely rely on exhibits, go get the book
Evidentiary Foundations, by Edward J Imwinkelried. At least you will learn how to admit your exhibits as evidence and be able to fight the DOE's Motion's to exclude your evidence for lack of proper foundation.

[jadams]

Originally Posted by TurnThePage

Hi jadams:

Don't forget the Tax Liability on the discharged amount, too. Hence, not only is it unrealistic to keep a student loan on the books for years & years with $0 payments, with the balance growing larger and larger, but "undue hardship" still exists when it is written off outside of Bankruptcy!

Please understand I wish you luck with your pleading. I am just presenting the counter arguments as I see them, so you are at least prepared to respond should they be raised by the DOE. Everything I've seen suggests this is a very very difficult thing to attempt.

Hypothetically if your situation is indeed permanent and you're stuck with just your SSDI for 25 years, I would question whether the math works out so that with 25 years of compounding interest due to $0 payments you are almost guaranteed to be insolvent according to the IRS at the time of cancellation (thus having no tax liability on the cancelled debt).

Maybe that itself adds to your undue hardship (i.e. the court basing their logic on you being IRS insolvent in 25 years), I don't know.