Citation Codes Equivalent Citations citation codes Docket Number No. 78-0015 Judges MARTIN, Bankruptcy Judge Acts Education — Higher Education Resources And Student Assistance — Student Assistance — Federal Family Education Loan Program — Repayment By Secretary Of Loans Of Bankrupt, Deceased, Or Disabled Borrowers; Treatment Of Borrowers Attending Schools That Fail To Provide A Refund, Attending Closed Schools, Or Falsely Certified As Eligible To Borrow See more information ... Smart Summary Please sign up to generate summary. IN RE HAYES. Bankrupts — Debts Not Affected by Discharge — Student Loans — Hardship MARTIN, Bankruptcy Judge A bankrupt's federally insured student loan could not be discharged on the basis of undue hardship where bankrupt had, subsequent to bankruptcy, reaffirmed a debt secured by a second car. Bankrupt was alleging that he was unable after bankruptcy to pay all of the expenses he was incurring. Under 20 U.S.C. § 1087-3, federally insured student loans are dischargeable in bankruptcy only after five years from the commencement of repayment or sooner if the court finds that repayment would create an undue hardship. The court found that minimum payments required by the plaintiff to repay the indebtedness on the federally insured notes would be approximately $53.00 per month. In addition, it noted that among the bankrupt's expenses was the cost of supporting two automobiles and the reaffirmed debt requiring monthly payments of $118.00. In refusing to find that repayment of his federally insured loans would create an undue hardship, the court noted that: "The discretion given this court to permit discharge during these first five years to prevent `undue hardship on the debtor or his dependents' is not intended to shelter the bankrupt from self-imposed hardship resulting from a reluctance to live within his means." See Sec. 17a [§ 523] at ¶ 9226.