However, not all debts are dischargeable and in certain cases, bankruptcy actually stands far away from being a solution to debt problems.
Student debt and undue hardship
If you are buried deep in debt but your debt is mainly student debt you may want to reconsider bankruptcy since almost all
student loans are non-dischargeable. The law is clear when it comes to student loan debt: Unless repayment causes the debtor undue hardship, courts wont allow discharge of student debt.
The above is applicable to Chapter 7 Bankruptcy and Chapter 13 Bankruptcy too. So in order to be able to get discharged from student debt youll need to meet the undue hardship requirement.
This concept implies an excessive poorness caused by the debt that would affect the ability of the debtor of paying for basic needs. The main difficulty is to prove undue hardship.
A bit of history
Student Debt used to be more easily discharged in the past. However, due to abuse, Bankruptcys legal requirements were modified and now it is extremely difficult to get discharged.
The abuse consisted on filing for bankruptcy immediately after finishing college, thus getting...
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