January 19, 2006: Debtor's multiple sclerosis supported "undue hardship" discharge of all but one of her student loans.
A Chapter 7 debtor who, as a result of fatigue associated with her multiple sclerosis, was not able to work a second job, and whose ability to repay her student loan debt would likely only worsen over time as her medical condition deteriorated, was entitled to an "undue hardship" discharge of all but one of her student loans, i.e., the loan whose $63.42 per month payment obligation roughly corresponded to the debtor's $62.29 per month in disposable income. The monthly expenses claimed by the debtor, including the $175 per month that she claimed to spend on cigarettes for herself and a dependent parent, were reasonable, and the payments on this one loan were the most that the debtor could likely afford.
A Chapter 7 debtor who, as a result of fatigue associated with her multiple sclerosis, was not able to work a second job, and whose ability to repay her student loan debt would likely only worsen over time as her medical condition deteriorated, was entitled to an "undue hardship" discharge of all but one of her student loans, i.e., the loan whose $63.42 per month payment obligation roughly corresponded to the debtor's $62.29 per month in disposable income. The monthly expenses claimed by the debtor, including the $175 per month that she claimed to spend on cigarettes for herself and a dependent parent, were reasonable, and the payments on this one loan were the most that the debtor could likely afford.
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