Bankruptcy does discharge a student loan, but only if it meets a tough legal standard called undue hardship. Here’s what you need to prove. Criminal fines and restitution and child and spousal support are types of debts that bankruptcy essentially never discharges. Income taxes can be discharged but only after meeting certain conditions. We’ve covered these in our last … Read More
Chapter 7 will stop student loan collections. Then either write off the student loans through “undue hardship” or have time to deal with it. Our last blog post was about a Chapter 7 bankruptcy stopping a tax garnishment only temporarily. In that situation this was OK because it gave time to set up a payment program with the IRS/state. … Read More
Writing off a student loan in bankruptcy requires showing “undue hardship.” What is that?