If you’re filing for bankruptcy, you may be wondering if student loans are dischargeable in bankruptcy.  Unfortunately, student loans cannot be discharged in any chapter of bankruptcy (Chapter 13 or Chapter 7).  There is one exception, however.  If you can prove to the bankruptcy court that your student loans create an “undue hardship” on you or your family, then there is an extremely small chance that the debt may be discharged.  Be aware that it is extremely difficult to prove “undue hardship,” unless you are physically incapable of working, and your chance of future employment is virtually zero.

If you plan to claim “undue hardship,” then you must file a separate motion with the bankruptcy court, and appear before the judge to explain your situation.  Unless you are physically unable to work, it’s extremely unlikely that you will convince the judge to discharge your student loans.  If most of your debt consists of student loans, then you may be better-off pursuing alternative arrangements – instead of filing Chapter 7 bankruptcy, since this debt is not likely to be discharged.

Even though you can’t typically discharge student loans, you can consolidate them under a Chapter 13 repayment plan. Another available option is challenging the loan balance under Chapter 13.  If your student loans have been transferred between multiple lenders several times, and it’s unclear how much is owed, then you can get a court determination of the actual loan balance. A judge will determine how much you owe and the court decision is binding for the student loan lender.  The decision is binding, even if the repayment period extends beyond the end of your bankruptcy repayment period.

Another available option is negotiation.  Consider negotiating with your student loan lender for a longer repayment period.  You may also be able to request temporary deferment until your financial circumstances improve.  Consolidating your student loan debts into a single large loan is another possible option.