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Will bankruptcy get rid of my student loans?

While bankruptcy discharges much of a person's debt, it does not automatically get rid of everything. According to U.S. Bankruptcy Code Section 523 (a)(8), student loans are one of the types of debts that may not be forgiven unless the debtor can prove undue hardship.

The courts will determine hardship based on these three factors:

  1. You would have below a minimal standard of living if you had to repay the loan.
  2. Your hardship would probably continue as long as you repaid the loan.
  3. You have been trying to repay the loan for at least five years prior to filing for bankruptcy.

Unless you are able to prove that these three factors are true, the courts will most likely force you to repay the loan.

Here are some examples of successful cases:

  • A middle-aged debtor earned minimum wage and proved that they had maximized their earning capacity and was stuck in a "cycle of poverty" due to modest family expenses and loan payments.
  • A married couple who worked in low-paying education jobs had an income that was just above the poverty level. They had taken steps to reorganize the debt, but were still spending a few hundred more than they were making, even on a stringent budget.
  • Borrowers that took out loans for an education that was fraudulent or had no benefit have also been granted discharges.

To learn more about how to discharge student loans, please contact the Haven Law Group P.C. With over a decade of experience and thousands of cases successfully handled, our bankruptcy attorneys can help you achieve financial stability. We not only assist clients with their bankruptcy case, but also help them restore their credit for free!

Resources for Discharging Your Student Loan

Get more information on getting rid of your student debt from the following resources!

Repaying Your Student Loan

Why You Can't Discharge Student Loans in Debt

How to Get Student Loans Forgiven in Bankruptcy

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