Student Loans In Bankruptcy

You may now discharge student loans in bankruptcy. As most of you reading this know, you can’t discharge these in bankruptcy unless you can prove that repaying them would cause you a major hardship.  In the past, that hardship was extremely difficult to prove, so hardship discharges for student loans in bankruptcies were rare.

The federal government, specifically the Department of Education and the Department of Justice has a relatively new program that is much more straightforward, and gives bankruptcy debtors a much better chance of getting their student loans discharged.

To be clear, this program is for federal loans only, not for private ones, and is for people who can’t pay their student loans, not for people who just don’t want to pay them.  But if you  have been trying to pay your student loans for at least 10 years, and can’t pay them or have to forgo normal living to pay them, this program gives you a good chance of getting them discharged in bankruptcy.

If you can’t pay your student loans without giving up necessities, contact a bankruptcy attorney who also practices student loan discharges today.