Student Loans

Dischargeability of student loans

Filing for bankruptcy usually cannot discharge student loan debt. However, if you can prove that your educational loan payments present an undue hardship for you, your family, and any dependents then you may be able to have them discharged.

Proving that your education loan payments are causing you an undue hardship is very difficult. You essentially must be physically unable to work and / or there is little to no chance of making an income to pay off your loans.

If you think you may have an undue hardship, in order to discharge your student loan debt you will need to file a lawsuit against the student loan company in the bankruptcy court and present your case to a judge. The court ultimately has the final say in whether you have an undue hardship. If the court does make the determination that you have an undue hardship, then your student loan debt will be completely eliminated.

Chapter 13 bankruptcy may be a solution to repaying your student loans if you do not have an undue hardship. If you file for Chapter 13 bankruptcy, the payment plan over the course of three to five years will dictate how much you pay in each installment. While you are in bankruptcy, there will be no collection actions against you. When your bankruptcy case has ended, you will still be responsible for paying off your loans if a balance remains.