Tag Archives: Student Loans

Can Student Loans be Discharged Through Bankruptcy?

New Jersey Bankruptcy Attorney Discusses the Facts A commonly-held belief in the last few years is that one cannot, under any circumstances, discharge a student loan debt through bankruptcy. The accepted thought is that you can get rid of most kinds of unsecured debt through bankruptcy, but student loans cannot be reduced. Student loans can, in fact, be reduced or discharged by bankruptcy, but only for those able to prove that repaying a loan would cause undue hardship. This is a difficult condition to meet: undue hardship is undefined in the bankruptcy code. To begin with, though, you must be able to prove that not only are you unable to afford your loans repayments now, but that you have very little chance of being able to pay them in the future. Since common wisdom says that discharging student loans is impossible, most borrowers do not even try. A 2007 report…
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