Student Loans and Bankruptcy, Any Way Out?
I can remember like it was yesterday when I signed my promissory note for college loans. They made it clear, you have to pay this student loan back, and they meant it.
Now as a bankruptcy attorney, my student loan is my only major debt. My wife and I have not yet purchased a home because we are waiting to see where she gets into graduate school, so you can bet if there was some way to avoid student loan debt, I would have found it.
The standard of review for discharge of a student loan in bankruptcy is if you can prove that payment of the debt will impose an undue hardship on you and your dependents.
If you want to try to discharge your student loan in bankruptcy, you will need to file a motion with the court to consider a discharge.
As far as I have been able to determine (if someone has found one, please email me), student loans have never been discharged in a Chapter 7 in the Eastern District of Pennsylvania.
http://blogs.findlaw.com/strategist/2009/06/scotus-to-examine-bankruptcy-discharge-of-student-loans.html
« Fraud Alert: Lowering Interest Rate Phone Call | Home | Can Debt Settlement Resolve My Debt Issues? »
Leave a Comment