New DOJ procedures allow us now to discharge federal student loans attesting to an undue hardship. We are co-presenting a webinar for the American Bankruptcy Institute on February 27 outlining this new program and helping our colleagues identify clients who may be eligible and learning how a bankruptcy filing can now discharge federal student loans.
Also, folks are receiving notices to begin repayments of EIDL, SBA or unforgiven PPP loans. Most of those loans are pretty sizable and can easily be discharged in a bankruptcy. We don’t recommend waiting to file. As it stands now, we don’t expect any challenges that these loans were fraudulently obtained, but that could change with a future administration.