Student Loans and Bankruptcy

by John

Hello. I have read that most student loans are not dischargeable through Chapter 7 bankruptcy. How exactly do you find out which student loans are or are not? Thank you.

JR Woodward

Comments for Student Loans and Bankruptcy

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Aug 02, 2010
Student loans and bankruptcy
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

Generally your federally-guaranteed student loans are not dischargeable in bankruptcy. You may be able to discharge some of that debt if you can prove that you would suffer an "undue hardship" if you were forced to continue paying on them; but discharges on that basis are extremely rare. Also, most private student loans are non-dischargeable too.

Have you spoken with your student loan lender/s about the fact that you are having difficulty repaying your loans? They have programs to help borrowers in your situation avoid defaulting on their loans. Most of the programs are for federally guaranteed loans however, not private education loans. Even so, regardless of the kind of education loan/s you have, I recommend you get in touch with your lender/s ASAP.

I also suggest that you get a free consultation with a bankruptcy attorney so that you understand all of your options for resolving your debt problem. It may be possible that you could in fact qualify for an undue hardship discharge and even if you don't, if you can resolve any other debts you may through bankruptcy, you may find that you have enough income as a result to keep up with your student loan payments.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

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