Key takeaways. To get student loans discharged, you'll need to prove that they cause you "undue hardship." Borrowers can choose between Chapter 7 and Chapter 13 bankruptcy, but they must file a ...

Key points It’s very difficult to get student loans discharged in bankruptcy. To qualify for a Chapter 7 bankruptcy discharge, you must demonstrate undue hardship, which requires proof.

To file for student loan bankruptcy, first file for Chapter 7 or Chapter 13. Next, you'll file an adversary proceeding for the court to evaluate a student loan discharge.

Fact checked by Vikki Velasquez If you’ve co-signed on a loan and the borrower files for Chapter 7 bankruptcy, you will be held responsible for the debt. Creditors can, and often do, come after ...

Filing for Chapter 7 Bankruptcy Once all your debts are confirmed, including your student loan, the trustee will liquidate all your non-exempt assets and use the proceeds to pay off as much of ...

Some debts that cannot be discharged in chapter 7 bankruptcy are student loans, spousal alimony, child support, debts owed to the government as fines, and debts incurred from intoxicated driving.

Why aren't student loans dischargeable under Chapter 7 or Chapter 13 bankruptcy? All know filing for bankruptcy is no joke. A person who chooses bankruptcy can expect 10 years of poor to no credit.

Filing for Chapter 13 bankruptcy can provide a structured path to manage overwhelming debts, but it's important to understand how this process affects student loans. While Chapter 13 offers relief ...

Chapter 7 can wipe out overwhelming debt, with notable exceptions such as student loans. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

Drawbacks of Chapter 7: Not all debts are eligible for discharge in Chapter 7. If you want to keep the assets, you may still be responsible for mortgages and car loan-secured debts.

Chapter 7 vs. Chapter 13 bankruptcy Chapter 13 is an alternative bankruptcy proceeding that allows you to keep more assets but takes much longer and reorganizes debt, rather than writing it off.

Key takeaways. To get your student loans discharged in bankruptcy, you’ll need to prove that they cause you “undue hardship.” Borrowers can choose between Chapter 7 and Chapter 13 bankruptcy ...