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Q.Can I get rid of Student Loans if I file for bankruptcy?
A.Student Loans. Student loans are generally not discharged in bankruptcy, unless the bankruptcy petitioner can demonstrate a "substantial hardship"-- that paying off the student loan will impose an undue hardship on the bankruptcy petitioner and his or her dependents.
To qualify for a substantial hardship discharge, the bankruptcy petitioner must submit an Application For A Hardship Discharge before the bankruptcy court discharges any of the petitioner's other debts. In the Application, the bankruptcy filer must prove: (1) that s/he not only could not make the student loan payments at the time the bankruptcy was filed, but will not be able to make the payments for a significant period of time in the future; (2) if forced to repay the student loans, s/he and his or her dependents will be unable to maintain a minimum standard of living; (3) that the cause of the bankruptcy petitioner's dire financial circumstances are not likely to change for a significant portion of the repayment period, if not indefinitely; and (4) that s/he did in fact make a good-faith effort to repay the student loans before filing for bankruptcy. In some states, it is not a win or lose all—some states allow a bankruptcy judge to find that the bankruptcy petition can repay a portion of the loan without undue hardship, and to discharge the balance of the student loan.
These are general rules and you should speak with a local bankruptcy attorney who can perform a detailed analysis of your specific situation.
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