Austin, TX asked in Bankruptcy for Texas

Q: What happens to my student loans if I file for bankruptcy?

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2 Lawyer Answers

Timothy Denison

Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: They will temporarily defer but you will still owe them bc they are generally non dischargeable.

Mr. J. Thomas Black

Answered
  • Bankruptcy Lawyer
  • Houston, TX
  • Licensed in Texas

A: Student loans are not dischargeable in bankruptcy unless you can show "undue hardship" which is very difficult. An adversary proceeding or lawsuit must be filed within your bankruptcy, and after properly serving the defendant(s) with the summons and complaint, you must prove to the bankruptcy court that (1) you cannot maintain even a minimum standard of living if forced to repay the student loans; (2) that situation is likely to continue for the term of the loans or most of the term of the loans; and (3) you have made good faith efforts to repay the loans.

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