If you are carrying a large student loan and are finding it hard to keep up with your payments, you may be wondering what options you have. You might even be considering filing for bankruptcy as a way to get a fresh start.
When it comes to bankruptcy and student loans, is this a viable option?
In the case of bankruptcy and student loans, the situation is a bit more complicated than with other types of debt. If you have a government-sponsored student loan or one issued by a non-profit agency, then filing for bankruptcy is not the answer. These types of loans are not discharged by declaring bankruptcy. You would still be responsible for paying back the entire amount, even if other debts were discharged.
There is a place for bankruptcy and student loans, but its quite difficult to satisfy the requirements for having your debt discharged in this manner.
The borrower would have to prove that he or she is unable to keep up with the agreed-upon payment schedule. In addition, he or she would have to demonstrate that an effort to pay was made and that the individuals financial situation is permanent.
In the event that there is no hope that the persons...
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