In Re: Desormes
A debtor can obtain the discharge of a student loan if the debtor proves, by a preponderance of the evidence, that the debtor cannot maintain, based on current income, a minimal standard of living; that this state is likely to persist for a significant portion of the repayment period; and that the debtor attempted in good faith to repay the loan, pursuant to 11 United States Code §523(a)(8). The debtor, Kenneth Desormes, attended the Charlotte School of Law between January 2007 and January 2010 and incurred more than $100,000 in debt, to finance his tuition. In January 2010, he filed for Chapter 7 bankruptcy relief. In April 2010, the debtor claimed that the Charlotte School of Law violated the automatic bankruptcy stay in 11 United States Code §362(a) and that he was entitled to damages. The Bankruptcy Court found that there was no evidence that the Charlotte School of Law willfully violated the automatic bankruptcy stay. Even if there were, the debtor did not prove any actual damages. The Bankruptcy Court rejected the debtor's claim that the tuition loan should be discharged, because it did not qualify as a "student" loan. The purpose of the loan clearly was for tuition and fees that were owed in connection with the education services obtained by the debtor. The debtor failed to prove, by a preponderance of the evidence, that there was an undue hardship that merited an exception to the general rule that a student loan is not dischargeable.