Student Loans, Is Bankruptcy An Option?
Student loans are generally not dischargeable in bankruptcy, which means that individuals are still responsible for paying them even after filing. However, there are some exceptions in which loans can be discharged.
In order to have these loans discharged, the individual must show that repayment of the loan would cause an undue hardship, which is a high standard to meet. The exact criteria for undue hardship can vary depending on the jurisdiction, but it typically requires the individual to demonstrate that they cannot maintain a minimal standard of living while repaying the loans and that this situation is likely to persist for a significant portion of the loan repayment period.
Filing For Bankruptcy
It is important to note that even if loans are not discharged, filing for may provide some relief from other debts, which could free up money to pay student loans.
It is important to consult with a bankruptcy attorney if you are considering filing for bankruptcy and are struggling to pay student loans. They can help you understand your options and the potential outcomes of filing for bankruptcy.