Private Student Loans Bankruptcy Law

Q: I have several years worth of private student loans, and am curious to know what the private student loans bankruptcy law is? I never ended up graduating from college, and am unable to make my private student loan payments. I have been told that bankruptcy will not remove my private student loans, but is there any private student loans bankruptcy law that you are aware of?

A: Though it is rather difficult to afford the costs of college without the help of private student loans, here is the problem with private student loan debt: private student loan debt is one of the most constricting forms of debt, because typically private student loans can not be discharged in bankruptcy.

As far as a private student loans bankruptcy law, you would need to consult a qualified bankruptcy attorney for your specific case and circumstances. Student loan discharge via bankruptcy is not likely, however it is also not impossible. Student loans can sometimes be discharged in bankruptcy if you can prove that repaying the student loans will impose an undue hardship on you and your dependents, however this is very difficult to prove.

Recently, there has been two new bills introduced to congress that are now attempting to restructure the way in which private student loan debt is handled in bankruptcy. You can read more about this at: New Bill for Private Student Loans and Bankruptcy. Since each bankruptcy case is different, you will need to consult with a bankruptcy attorney to receive correct information pertaining to the private student loans bankruptcy law and your specific circumstances.