Debtors have heard over and over again that student loan debt is not eligible for discharge, unless they meet standards related to undue hardship. But, a recent study reviewed student loan discharges in bankruptcy with 4 out of 10 people being successful at getting their debt eliminated. While this may not seem like much, it actually brought up another issue; more debtors may have qualified to get student loan debt discharged but didn't bother trying.
The study took one year to complete and included 69,000 debtors who may have qualified for student loan debt discharge. The study also concluded that a majority of debtors who filed for bankruptcy didn't attempt to get student loan debt discharged while possibly matching the required criteria. Those who participated in the study were less likely to be employed, more likely to have limited income prior to filing for protection and had a higher probability of having a medical hardship.
Only one-tenth may make an attempt to discharge their debt. In order to get loans discharged the debtor has to prove they don't have the ability to repay them now, in the future, and has made a good faith effort in getting them repaid. Even if you don't qualify for discharge under Chapter 7 , you may be able to repay them under Chapter 13 bankruptcy with a court-approved repayment plan. There are different aspects to think about when it comes to student loan debt. If you are wondering whether it is possible to get it discharged, consider reviewing what court jurisdictions in your area have done in the past by consulting with an attorney.