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SUMMARY

Firm founder and attorney Chad Van Horn successfully positioned client Teodor Feher for a $35,313.00 federal student loan discharge, as ordered by Judge Scott M. Grossman. This case (No. 24-10686-SMG, Adv. No. 24-01334-SMG) underscores the impact of the Department of Justice (DOJ) and Department of Education’s (DOE) updated approach to determining “undue hardship,” offering renewed hope for individuals burdened by overwhelming student debt. This outcome signals a positive trend for borrowers seeking relief. Van Horn Law Group is at the forefront of this evolving landscape, providing expert guidance and advocacy.

KEY TAKEAWAYS

- $35,313 in federal student loan debt discharged

- Groundbreaking Agreed Final Judgment entered March 13, 2025

- Aligns with DOJ/DOE’s evolving stance on “undue hardship”

- Van Horn Law Group leads in student loan bankruptcy advocacy

KEY JUDGMENT

- On March 13, 2025, the Court entered an Agreed Final Judgment in Feher v. United States Department of Education (Adv. No. 24-01334-SMG) discharging $35,313.00 in federal student loan debt.

DETAILS

Background

Teodor Feher faced a daunting financial burden from both federal and private student loans incurred while pursuing a bachelor’s degree at NYU and a master’s degree at the University of Oxford. Following graduation, a harrowing business dispute and personal defamation battle triggered a chronic illness, forcing Feher out of the workforce. His student loans soon went into default.

Case Approach

Attorney Chad Van Horn took on Feher’s case at a critical juncture. Under the revised student loan discharge guidelines announced by the DOJ and DOE, borrowers can submit an attestation form and evidence to demonstrate that repayment would impose an undue hardship. Specifically, they must show:

- A present inability to repay

- That this inability is likely to persist

- A good-faith effort to repay (or otherwise meaningfully engage with loan servicers)

“In Feher’s situation, the Department of Education and the Department of Justice ultimately agreed that the required undue-hardship factors were met,” said attorney Chad Van Horn. “This paves the way for a formal discharge of the loans by the judge, putting all collection efforts to rest and allowing my client to move on with his life.”

IMPACT OF EVOLVING FEDERAL POLICY

This successful discharge, as evidenced by the Agreed Final Judgment entered on March 13, 2025, highlights a significant shift in the landscape of student loan bankruptcy. The DOJ and DOE have recently revised their guidance for attorneys handling student loan discharge cases. This revised process, developed in coordination between the DOJ and the DOE, advises the government to stipulate to facts supporting undue-hardship claims and recommend discharge to the bankruptcy court where a debtor, based on information provided in a government-developed attestation form, satisfies three stated conditions mirroring the Brunner test. This guidance aims to ensure “discharges are sought and received when warranted by the facts and the law.”

“We are extremely pleased with the Court’s decision to grant the discharge,” said attorney Chad Van Horn. “This judgment is a testament to the hard work of our team and the positive impact of the evolving federal guidelines.”

Attorney Chad Van Horn also acknowledges the professionalism and diligence of Assistant United States Attorney Raychelle Tasher. Her commitment to ensuring a fair and equitable resolution was instrumental in achieving this positive outcome for Mr. Feher.

Furthermore, Attorney Van Horn extends his gratitude to the Van Horn Law Group team, whose hard work and dedication were essential to securing this favorable result.

ABOUT VAN HORN LAW GROUP

Van Horn Law Group provides compassionate and affordable legal services in personal and corporate bankruptcy, student loan litigation, foreclosure defense, and debt negotiations. Ranked among the top bankruptcy firms in the country by number of cases filed, Van Horn Law Group is led by founding partner Chad Van Horn, a recognized authority on bankruptcy and the author of Everything You Need to Know About Bankruptcy and The Debt Life. Attorney Van Horn is certified in both consumer and business bankruptcy. The firm has achieved significant recent success in securing student loan discharges for clients under evolving federal guidelines.

For more information, visit www.vanhornlawgroup.com or call (954) 637-0000.

Van Horn Law Group provides compassionate and affordable legal services in personal and corporate bankruptcy, student loan litigation, foreclosure defense, and debt negotiations. Ranked among the top bankruptcy firms in the country by number of cases filed, Van Horn Law Group is led by founding partner Chad Van Horn, a recognized authority on bankruptcy and the author of Everything You Need to Know About Bankruptcy and The Debt Life. Attorney Van Horn is certified in both consumer and business bankruptcy. The firm has achieved significant recent success in securing student loan discharges for clients under evolving federal guidelines.

Contact Details

Van Horn Law Group, P.A.

Chad Van Horn, Esq.

+1 954-495-9960

chad@cvhlawgroup.com

Company Website

https://www.vanhornlawgroup.com/

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