Are Student Loans Dischargeable in Bankruptcy? Only if You Can Prove Undue Hardship

Many
students don't realize the scope and extent of the lifelong financial burden
they saddle themselves with when taking out student loans. It is only after
getting into the "real world" that they realize that living expenses
are higher, and after tax income is lower, than they anticipated, making
student loan debt repayment difficult if not impossible.
Some
look to bankruptcy for relief and a fresh start. But all debt is not treated
equally in bankruptcy. Student loan debt is not the same as, for instance,
credit card debt. It is not dischargeable pursuant to Bankruptcy Code section
523(a)(8) except in one narrow circumstance. Specifically, to discharge student
loan debt, a debtor must show undue hardship - a very high bar. Read More ›
Tags: Chapter 7, Western District of Michigan