29th Sep 2014

Foley bankruptcy attorneyStudent loans are not dischargeable in bankruptcy unless repaying the loan creates an undue hardship on you or your family.

Proving hardship requires showing that 1) you are unable to provide a minimum standard of living for yourself and your dependents if you are required to repay the loan, 2) additional circumstances exist indicating that your situation is likely to persist; and 3) you have made a good faith effort to repay the loans. Some courts will discharge part of the loan on a showing that repaying it all would be a hardship.

Be warned, it is near impossible for a debtor to show undue hardship.

Student loans are sometimes unenforceable due to school closures, fraud, etc. Chapter 13 can provide a way to cure defaults on student loans, or to pay them off over the course of the plan.

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