In order to get rid of student loans in bankruptcy, you have to start what is called an "adversary proceeding" in bankruptcy court after you file your bankruptcy petition and prove that it would be an "undue hardship" for you to repay your student loan debt. That is practically impossible.
Debtors who have student loan arrearages may be able to use Chapter 13 bankruptcy to have more control over the amount that they have to pay while they are in bankruptcy, but will still be on the hook for any unpaid amounts after the bankruptcy is over.
Most student loans are held by the federal government, but many students take out such loans from private entities (because the loans from the federal government are insufficient for funding an education). Regardless of whether you have federal or private student loans, you cannot get rid of them in bankruptcy – unless you meet the undue hardship exception, and very, very few people do.
If you are having difficulty repaying student loans, your best bet might be to negotiate with the lender to get a better payment plan. Indeed, federal and private lenders alike offer forbearances, deferments, and other options which may bake it easier for you to repay your student loans.
Baland Law Office, P.L.L.C. represents consumer and small business debtors in both Chapter 7 and Chapter 13 bankruptcy proceedings. Please note that only individual debtors can file for Chapter 13 bankruptcy relief, not businesses. I can also help student loan debtors negotiate with the federal Department of Education and other lenders. Please call (763) 450-9494 to schedule an appointment to discuss your situation today, find out what your options are, and whether declaring bankruptcy is the right choice for you!
DISCLAIMER: Baland Law Office, P.L.L.C. is a debt-relief agency, and Timothy H. Baland, Esq. is a debt-relief agent. We help people like you to obtain bankruptcy relief.
WARNING: The information contained in this article does not constitute legal advice and may not be applicable to your situation. Reading this blog post does not create an attorney-client relationship between you and Baland Law Office, P.L.L.C. You should always discuss your situation with an attorney before taking any action based on what you may read in this blog. To that end, please call (763) 450-9494 to set up an appointment to discuss your situation.