Jonathon Gerhardt was a professional cellist who had obtained over $77,000 in go
ID: 2456124 • Letter: J
Question
Jonathon Gerhardt was a professional cellist who had obtained over $77,000 in government-insured student loans to finance his education at the University of Southern California, the Eastman School of Music, the University of Rochester, and the New England Conservatory of Music. He was 43 years old, healthy, and had no dependents. He subsequently defaulted on each loan owed to the U.S. government, having paid a total of only $755 on loans. Gerhardt filed for Chapter 7 bankruptcy and subsequently sought discharge of his student loans. At the time he filed for bankruptcy, Gerhardt was earning $1,680.47 per month as the principal cellist for the Louisiana Philharmonic Orchestra (LOP), including a small amount of supplemental income earned as a cello teacher for Tulane University. His monthly expenses, which included a health club membership and Internet access, averaged $1,829.39. During the LPO off-season, Gerhardt collected unemployment. Should the court discharge Gerhardt’s student loans on the grounds that their repayment would constitute an undue hardship?
Explanation / Answer
No, Court should not discharge Gerhardt’s student loans on the grounds that their repayment would constitute an undue hardship beacuse bankruptcy gives a chance to debtor for repaying the loan amount after some time/ delay the payment rather than grant a discharge from liability . AND
As per the exception of general rule that "student loan can not be discharged" :- if debtor is disable and does not seem to repay the loan amount , the court may discharge the loan liability , And
If repayment of loan constitute “undue hardship” on debtor and also debtor has the dependent , the liability may also be discharge from paying the loan amount.
In this Gerhardt"s case, he is 43years old healthy man and he has no dependent. So there is no question raises to take advantage of above exception regarding discharge from liability to repayment of loan
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