What Changed in the Law? (2022 Guidance)

The Game-Changing DOJ and DOE Guidance That Opens New Doors

At The Independence Law Firm, we’ve been fighting for student loan discharge in bankruptcy for years. But in November 2022, everything changed. The Department of Justice and Department of Education issued new guidance that has revolutionized how government attorneys approach student loan discharge cases. This isn’t just a minor policy update—it’s a fundamental shift that dramatically improves your chances of discharge.

The Historic Shift: From Adversary to Potential Ally

Before November 2022: David vs. Goliath

• Government attorneys fought discharge aggressively
• Every case was an uphill battle
• Burden of proof felt insurmountable
• Judges rarely saw government support

After November 2022: A New Partnership Possibility

• Government attorneys now evaluate cases fairly
• Can actually SUPPORT your discharge
• Clear standards for government agreement
• Judges more willing to approve discharges

What the New Guidance Actually Says

The Three-Part Evaluation Process

1. Present Inability to Pay The government now considers:

• Your income versus expenses
• Family size and obligations
• Cost of basic necessities
• Whether payments would cause “undue hardship”

2. Future Inability to Pay More realistic assessment of:

• Your age and health
• Employment prospects
• Earning potential based on education
• Family circumstances likely to persist

3. Good Faith Efforts Broader, fairer interpretation:

• Attempts to find employment
• Efforts to maximize income
• Communications with servicers
• Participation in payment programs (when able)

The Revolutionary “Attestation Form”

What It Is:

• Standardized form to present your hardship
• Government attorneys must review it
• Creates presumption of good faith
• Streamlines the evaluation process

Why It Matters:

• Consistent evaluation standards
• Faster case processing
• Higher approval rates
• Less subjective judgment

Real Changes We’re Seeing in Court

Government Attorneys Now:

Actively Seek Settlement

• Propose partial discharges
• Negotiate payment amounts
• Consider creative solutions
• Work toward resolution

Support Worthy Cases

• File briefs supporting discharge
• Agree to facts demonstrating hardship
• Don’t oppose when criteria met
• Sometimes recommend full discharge

Apply Practical Standards

• Consider real-world expenses
• Acknowledge medical limitations
• Recognize age implications
• Understand family obligations

The Independence Law Firm’s Strategic Advantage

We’ve Mastered the New Framework

Attestation Form Expertise

• Know exactly what government looks for
• Present your story compellingly
• Document every relevant factor
• Maximize approval chances

Strategic Case Building

• Align perfectly with new standards
• Anticipate government concerns
• Build cooperative relationships
• Achieve faster resolutions

Negotiation Leverage

• Use guidance as blueprint
• Quote favorable provisions
• Hold government accountable
• Push for best outcome

What This Means for Different Types of Cases

Strong Beneficiaries of New Guidance:

Older Debtors (50+)

• Age now explicitly considered
• Limited working years acknowledged
• Retirement needs recognized
• Future inability presumed easier

Disabled Debtors

• Medical evidence given more weight
• Functional limitations considered
• Work capacity realistically assessed
• Long-term conditions acknowledged

Parent PLUS Borrowers

• Special consideration for parents
• Age and retirement factors
• Limited benefit from education
• Good faith presumed

Long-Term Unemployed

• Efforts to find work credited
• Skill obsolescence recognized
• Geographic limitations considered
• Underemployment acknowledged

Specific Changes That Help You

Expense Standards Modernized

Now Recognized:

• Healthcare costs beyond insurance
• Childcare and eldercare expenses
• Transportation in rural areas
• Technology needs for work
• Home maintenance costs

No Longer Required:

• Bare subsistence living
• Choosing cheapest everything
• Sacrificing all quality of life
• Impossible budget constraints

Good Faith Interpreted Fairly

What Counts Now:

• Any payment attempt when able
• Seeking deferments/forbearances
• Communicating with servicers
• Trying income-driven plans

What Doesn’t Disqualify:

• Inability to pay anything
• Not knowing all options
• Strategic defaults
• Prioritizing family needs

How We Maximize the New Standards

Our Proven Process:

1. Strategic Evaluation

• Assess under new criteria
• Identify strongest arguments
• Document supporting factors
• Build compelling narrative

2. Attestation Form Mastery

• Complete comprehensively
• Support every assertion
• Anticipate follow-ups
• Present professionally

3. Government Engagement

• Open cooperative dialogue
• Provide requested information
• Build trust and credibility
• Negotiate from strength

4. Court Presentation

• Cite guidance provisions
• Show government agreement
• Present united front
• Achieve approval

What Hasn’t Changed (And Why You Still Need Expert Help)

Still Required:

• Adversary proceeding filing
• Undue hardship showing
• Proper documentation
• Legal representation recommended

Still Challenging:

• Complex legal process
• Specific requirements
• Strategic decisions
• Creditor opposition possible

The Window of Opportunity

Why Act Now:

Favorable Climate

• Guidance is new and strong
• Government attorneys adjusting
• Judges seeing more approvals
• Momentum building

Political Considerations

• Current administration supportive
• Future changes possible
• Lock in benefits now
• Avoid policy reversals

Personal Benefits

• Faster resolutions
• Better outcomes
• Less stressful process
• Higher success rates

FAQs About the New Guidance

Q: Does this guarantee discharge? A: No, but dramatically improves chances for qualifying cases

Q: Does it apply to private loans? A: Directly applies to federal; indirectly helps all cases

Q: How long will this last? A: Unknown, which is why acting now is crucial

Q: Do I still need bankruptcy? A: Yes, discharge still requires adversary proceeding

Your Next Steps Under the New Guidance

1. Immediate Evaluation

We’ll assess your case under the new standards and tell you honestly if you benefit

2. Strategic Filing

Time your bankruptcy to maximize the guidance advantages

3. Attestation Excellence

Perfect your form with our expertise for best results

4. Fast Resolution

Many cases now resolve in months, not years

The Bottom Line: A New Era for Student Loan Discharge

The 2022 guidance represents the most significant positive change in student loan bankruptcy law in decades. At The Independence Law Firm, we’ve already used these new standards to achieve remarkable results for clients who might have struggled under the old system.

Don’t wait for this window to close. Contact us today to learn how the 2022 guidance could be your key to student loan freedom.