Question

Assume that Hann did not pay her student loans in full and did not have any supporting evidence that indicated that she did. Instead, Hann claims that she does make enough money to pay her full loan payment each month and that they should be forgiven. Hann is employed and makes an average salary for her occupation.In order to obtain relief from her debts, Hann _____ allege that she is insolvent and cannot pay her debts.
need not

Generally, student loans _____ dischargeable in bankruptcy.
are not

An exception to this rule is if there is evidence of _____.
undue hardship

It is likely that Hann's financial situation _____ qualify her for discharge.
does not

Answer 1

Answer:

True - Because the court will test for her insolvency and/or living hardship with the Brunner test which requires her showing that she cannot maintain, based on current income and expenses, a “minimal” standard of living. This is not the case because she is employed.

Explanation:

1. Assume that Hann did not pay her student loans in full and did not have any supporting evidence that indicated that she did. Instead, Hann claims that she does make enough money to pay her full loan payment each month and that they should be forgiven. Hann is employed and makes an average salary for her occupation.In order to obtain relief from her debts, Hann need not allege that she is insolvent and cannot pay her debts.

True - Because the court will test for her insolvency and/or living hardship with the Brunner test which requires her showing that she cannot maintain, based on current income and expenses, a “minimal” standard of living. This is not the case because she is employed.

2. Generally, student loans are not dischargeable in bankruptcy.

TRUE -  Student loans are not discharged in bankruptcy unless you show that payment of the debt “will impose an undue hardship on you and your dependents.”

3. An exception to this rule is if there is evidence of undue hardship

TRUE -  Student loans are not discharged in bankruptcy unless you show that payment of the debt “will impose an undue hardship on you and your dependents.”

4. It is likely that Hann's financial situation does not qualify her for discharge.

TRUE -  Because Hann is employed and makes an average salary for her occupation. The court will test for her living hardship and the most common test is the Brunner test which requires a showing that the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living; but this is not the case because she is employed