Can I Discharge My Student Loans In Bankruptcy

Q: Is there any way possible that I can discharge my federal student loans and private student loans in bankruptcy court? I simply cannot keep up with the payments, and at this rate with all these fees and charges, my balance is growing, and I will never be able to pay this off in my lifetime on what I make.

A:Having student loans discharged in bankruptcy is very rare. To successfully discharge your student loans through bankruptcy, you would have to be able to prove an undue hardship. Having too much debt, not making enough money, or being unemployed does not qualify as an undue hardship. An undue hardship, for example, would be something such as a person being injured or disabled so severely that they will never be able to work again in their life.

It is extremely difficult for the average person to discharge federal or private student loans through bankruptcy. Even if a bankruptcy court rules in your favor to eliminate or discharge other overwhelming debt, in most cases, the judge will incorporate your student loans into your debt repayment plan under Chapter 13 bankruptcy. Any balance remaining after the payment plan ends will still be due. However, if you think you may be able to prove an undue hardship, it would be in your best interest to contact a qualified bankruptcy attorney for professional legal advice.

Even though your student loans may not be discharge in bankruptcy, there are other options to help ease the burden of student loan debt. For federal student loans there are several different repayment plans, including income contingent repayment plans. For private student loans, you may be able to consolidate your current private student loans to help lower your monthly student loan payments. For more information on student loan debt relief view our Student Loan Debt Help section.