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Can I get rid of my student loans by filing for bankruptcy?

There was a time when all you had to do in order to get out fro under student loan debts was to file for bankruptcy. It is no longer quite so simple. The government has spent some time and money in order to get the laws changed and they have succeeded quite well. Everything changed in the late 90's, now in order to get your loans discharged this way you not only have to prove that you cannot pay them back but you also have to prove that to try and do so would cause undue hardship to you.


Proving undue hardship is hard, you will have to go to court. You will also have to prove that there is no way that you can pay the student loans back without sinking way below the poverty level. If you can pay the loans back and still afford to eat and have shelter then chances are you will be stuck with the student loans. You will not be able to get the taken care of through bankruptcy. You may not have to pay back the full amount but you will have to pay back some of the loans.

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If your debts amount to a lot more than just your student loans then bankruptcy filing may still be your best course of action. Even if you cannot get rid of the student loans, you will still be able to get all of your other debts handled. Then you will actually be able to afford to pay off the student loans. You can talk to your lender and set up a payment schedule that will suit your circumstances better. Most student loan administrators will be willing to work with you on this.

Heavy debt is a hard burden to bear and when things get too bad sometimes filing for bankruptcy is your only possible option. Just make sure that you take into consideration how it will affect your student loans before you file.