In most cases, student loans cannot be discharged in bankruptcy. However, you may be able to discharge your student loan if you qualify because the repayment of the student loan results in an “undue hardship” to you. In reviewing your request for a discharge of your student loans, the bankruptcy court will consider the following:
- Are you unable to maintain a minimum standard of living if you have to repay the student loans?
- Will your financial hardship remain the same for the amount of time it will take to pay off the loan?
- Have you made a good faith effort to repay the student loan?
If you become permanently disabled, there is a good chance that you may qualify to have your student loans discharged in bankruptcy. You can also apply directly to the federal government to discharge federal loans without filing bankruptcy if you become permanently disabled. Feel free to contact Redd Law, PLC at 248-327-3872 for more information.