Bankruptcy and Your Student Loan

Filed in archive Information About on May 29, 2010

© laura padgett

The recession has hit many people hard and many who were once on a good financial footing now find themselves without a home, and often, without a job. If you have a student loan to pay off, you may be able to discharge your student loan debt through bankruptcy.

According to the bankruptcy laws, since 1998 it has not been possible to discharge your student loan debt …...unless certain conditions exist. This is the area that might make it possible for you to get rid of the burden of loan repayment if you do not have a job, and do not have one on the horizon.

The conditions that may allow you to discharge student loan debt under bankruptcy have to do with undue hardship. You have to prove to the court that you would be under undue hardship if you had to maintain student loan repayments. It has been shown that proving that you could not maintain a minimum standard of living for yourself and your family has been accepted as undue hardship.

Each case is taken on its own merits. Always seek legal advice.