Can student loans be discharged in bankruptcy?
Typically student loans are not discharged in bankruptcy. In order to have your student loans discharged, you must be able to show that repaying your student debt will impose an “undue hardship” on you and your dependents.
It is difficult, but not impossible, to make this showing. However, you generally will not be able to prove undue hardship unless the court finds that you are physically unable to work and have no chance of gaining future employment.
In order to have your student loans discharged, you must file a separate motion and present your case to a judge. Both privately funded and federally funded student loans are treated the same way.
For free legal advice on bankruptcy, including the effect of bankruptcy on student loans, contact Fears | Nachawati today. To speak with one of our experienced bankruptcy lawyers, simply email us or phone us toll free at 1.866.705.7584.