Updated DOJ Guidance Helps Debtors Win Student Loan Bankruptcy Litigation

On November 17, 2022, the United States Department of Justice (“DOJ”) issued its new Guidance for Department Attorneys Regarding Student Loan Bankruptcy Litigation (“Guidance”), crafted in consultation with the Department of Education. The Guidance is not statutory law, and is unlikely to herald a dramatic change in case law governing student loan dischargeability. Instead, the Guidance represents the DOJ’s reinterpretation of existing law, and consequently offers a means to expedite student loan discharge litigation. Specifically, the Guidance instructs DOJ attorneys to respond to such litigation by recommending a debtor’s student loan be discharged if the debtor lacks an ability to repay the loan, such inability is likely to persist, and the debtor acted in good faith in attempting to repay the loan. If you believe the above conditions apply to you, there has never been a better time to consult with the award-winning attorneys at Dal Lago Law.