Student Loans and Bankruptcy

If you are struggling with student loan debt, you may be wondering if you can discharge that debt in bankruptcy. Unlike most unsecured debts (such as medical bills or credit card debt), student loan debt is not automatically discharged in bankruptcy. In order to wipe out student loans, you must bring an action before the bankruptcy court to determine the dischargeability of those debts. The standard you must meet to discharge student loans is a tough, but not impossible, one to meet.

For some filers, Chapter 13 bankruptcy is a good option. Although you cannot discharge your student loans (unless you meet the tough standard), you can often delay or reduce your monthly student loan payment for the duration of your repayment plan (which usually lasts between three and five years).