Bankruptcy and Student Loans

Bankruptcy and Student Loans

Bankruptcy does not normally allow for the discharge of student loans. Only under an extreme hardship can a student loan be discharged. These guidelines give the degree of difficulty of eliminating student loans through bankruptcy. Unemployment and other debt obligations will rarely do the trick to discharge a student loan through a bankruptcy. As I have mentioned to clients over the years, you wouldn’t want the hardship it takes to qualify for the elimination of student loans in a bankruptcy.

Efforts have been made to allow the elimination of student loans in bankruptcy. But, to date, nothing has changed. The Youtube video below presents a picture of the efforts made to make student loans more likely to be discharged through a bankruptcy filing.

What, then, to do? Your best bet is to eliminate all the debts you can through bankruptcy if this is your best debt elimination option. Often times getting rid of other debt will allow you to manage your student loans.

Whether you might qualify for student loan hardship allowing you to eliminate your student loans in a bankruptcy is a factual analysis. Since student loans are often the biggest consumer debts, a free consultation to determine whether student loans can be discharged is well worth the price!