Q: I keep hearing that you can't discharge student loan debt in bankruptcy. Are there any exceptions?
A:
You are correct, the overwhelming majority of student loan debt cannot be discharged in bankruptcy. There is an "undue hardship" exception. This exception is very hard to meet. Functionally the test if whether you will realistically be unable to ever repay the debt (e.g. you are permanently disabled, etc.). Also be aware that most student loans required a guaranteer to also sign (for most people this is their parents), which for many loans means that the guaranteer may also be liable. This should not dissuade you from seeking advice from a bankruptcy attorney.
Also be aware there are often means to reduce the loan payments via income based need, debt consolidation, etc. (these have their own problems--larger debt due to a longer life and a higher interest rate, but they are better than being significantly in arrears).
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