In certain cases STUDENT LOANS can be dischargeable in a bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”

Courts use different tests to evaluate whether a particular borrower has shown an undue hardship.

Essentially the Debtor has to prove the following

1) The debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the student loans.

2) Additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans.

3) The debtor has made good faith efforts to repay the loans.

Assuming you can discharge your student loan debt by proving hardship, bankruptcy may be a good option for you. It is a good idea to first consult with a lawyer to understand other pros and cons associated with bankruptcy.

Reganyan Law has been successful at discharging student loans. If you would like to discuss the particulars of your student loan issues and options in Bankruptcy, you can always call me for a free consultation.