Can You File Bankruptcy on Student Loans?

Being overwhelmed by debt that seems insurmountable is not an easy place to be. If you are in student loan debt and are also considering bankruptcy, it’s important to learn about your options and not give up hope. Getting student loan debt discharged in bankruptcy is difficult, but not impossible. In fact, student loans may be dischargeable if they cause undue hardship. The Brunner Test The relationship between bankruptcy and student loans is a complex one. In trying to better understand these complexities and determine whether it’s possible for your student loan debt to be discharged in bankruptcy, it’s important to understand the Brunner Test. Since Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, it’s become much more difficult to get federal or private student loans discharged in bankruptcy when compared to other types of debt. They can, however, still be discharged if the borrower can prove the loan causes undue…

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