A bankruptcy judge has ruled that a 2004 graduate of Yeshiva University’s Cardozo Law School may erase more than $220,000 in student loan debt in what is being described as a“stunning” decision.
Regulations grad, 46-year-old Kevin Jared Rosenberg, represented himself. Their yearly earnings is less than $38,000, along with his month-to-month earnings after costs runs at a deficit of approximately $1,500, in accordance with the Jan. 7 opinion by Chief U.S. Bankruptcy Judge Cecelia Morris associated with Southern District of New York.
The Albany occasions Union, which noted the “stunning decision, ” plus the Wall Street Journal have protection.
Rosenberg’s consolidated education loan was at forbearance or deferment for ten years starting in April 2005. He made 10 re re payments of varying quantities through the next 26 months.
Morris stated she ended up being using the Brunner that is so-called test release of pupil financial obligation since it ended up being initially meant. Considering that the test is made in a 1987 choice, cases interpreting it have lay out “punitive requirements” and “retributive dicta, ” she said. Those harsh situations “have become a quasi-standard of mythic proportions, to such an extent that many individuals (bankruptcy specialists, along with lay people) think it impractical to discharge student education loans, ” she said.
“This court will likely not take part in perpetuating these urban myths. ”
The Brunner test considers whether or not the debtor can maintain a minor total well being if forced to settle the loans, whether an incapacity to keep up the standard that is minimal very likely to continue for an important percentage of the repayment period, and perhaps the debtor had made a beneficial faith work to settle the loans cash central.
Morris stated Rosenberg had been eligible to relief beneath the test.