Can I discharge my student loans in bankruptcy?

Two-thirds (65.6%) of students with a 4-year degree and some debt in the years 2007-08, and the average education level of loan debt for graduates was $ 23,186 (excluding PLUS loans but also Stafford, Perkins, state) colleges and private loans. Among his final four years undergraduate students who borrowed federal student aid requested 86.3%, to pay for their education and the cumulative average debt was $ 24,651.

For those who have to repay a loan andconsider filing for bankruptcy, the question in mind would be: He has filed for bankruptcy discharge my load of students? Unfortunately student loans are not generally issued in the event of insolvency. Under Chapter 7 of the bankruptcy law, the only time that a loan could be discharged, if in this way, the "undue burden" debtor. The same principle applies for Chapter 13 bankruptcy cases.

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At a time when student loans were dischargeablein case of failure, like all other unsecured debts. Discharge student loans became popular in 1970, when the students would soon file bankruptcy after they ended their costly training. However, the conditions for discharging student loans in 1998 were modified.

Can I discharge my student loans in bankruptcy?

Under the new laws are student loans dischargeable in bankruptcy unless the court is satisfied that the repayment of the loan would bring undue hardship for the borrower or the borrowerRelatives. There are three basic criteria for determining whether a student loan is a real need, and then if a student is entitled to a discharge:

1 will be the repayment of the loan to avoid maintaining a minimum standard of living?

2 It 'hard for you to keep on the minimum living standard in the long?

3 Have you tried to repay the loan before the bankruptcy. You must repay your loanleast 5 years?

It 'very difficult to establish a real need in this time. As a rule, the debtor must show some 'life-changing event that prevents him or her, that from an activity, such as permanent disability. Even then, the bankruptcy judge will consider the totality of circumstances and a decision on the person's ability to repay the loan over time. Currently there is legislation in both houses of Congress, some student loans, which would returndischargeability pre-1988 status.

Can I discharge my student loans in bankruptcy?