Student Loan Bankruptcy – No Longer a Viable Option
In 1998 the law changed in regard to bankruptcy and student loans. It’s no longer possible to file for bankruptcy and wipe away
student loans. Now you need to prove that the repayment will cause undue hardship to you and/or your family before the bankruptcy
clause will become applicable in your case. “Undue hardship” in this context is interpreted as living below the minimum standard of
living.
In case you have trouble with repayment, instead of considering bankruptcy, it’s better to consult an attorney or a credit repair or
finance professional who will offer you the best solutions available in your case. Often solutions are not easy to see to the lay
person – but with the right guidance and information you will be able to find better ways out of the financial crisis than filing for
bankruptcy.
