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can student loans be dischargesd in bankruptcy

Posted on: 06th Nov, 2006 11:24 pm
can student loans be discharged in bankrutcy?
Hi Tyrinalea,

Student loan can no longer be discharged in bankruptcy until and unless the student can prove that repaying the loan can create hardships for him as well his family. In the past, such loans were dischargeable after they had been paying for 7 years. But the law has changed since 1998.

In order to prove that a student is going through sever hardship, he needs to show that he cannot earn a minimum standard of living for himself and family if he has to pay off the loan. However, some courts may discharge part of the loan after the student proves his hardship.


Posted on: 06th Nov, 2006 11:38 pm

To what Sara said about student loan being discharged in the bankruptcy case. Let me add that for proving that the repayment of the student loan will be a hardship for you and that the loan be discharged you will have to bring what is called an "adversary proceeding" in your bankruptcy case.

And if the court does find the repayment of the student loan will cause undue hardship for you, it then can be discharged.

Posted on: 07th Nov, 2006 09:48 am
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