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Cake day: October 18th, 2024

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  • To successfully have both private and federal student loans discharged in bankruptcy, you must show that repaying the loans causes an “undue hardship” on you and your dependents. That’s a tougher standard than those who file for bankruptcy must show to discharge credit card debt, personal loans or past-due utility bills. In many cases, however, it’s worthwhile to try to show you meet this standard if you have a case for it.

    There are alternatives to bankruptcy if your loan payments are unaffordable, and since bankruptcy has serious consequences for your credit and financial life, look into those first. If bankruptcy is the right choice for you, here’s how it can wipe out or reduce student loan debt. Source