Posted by Hampton Young

Student loans have been notoriously difficult to discharge in bankruptcy. This is because they are considered to be "non-dischargeable" under the Bankruptcy Code, meaning they cannot be eliminated through bankruptcy like many other type of debt. However, recent changes in policy and law have made it somewhat easier for borrowers to obtain relief.

Why Student Loans Were Difficult to Discharge

Student loans have been difficult to discharge in bankruptcy for several reasons. First, the Bankruptcy Code requires borrowers to prove "undue hardship" in order to discharge their student loans. This is a difficult standard to meet, as it requires borrowers to show they are al...

Posted by Hampton Young

“The fact is, out of all the possible reasons for going bankrupt, only three account for nearly 90 percent of bankruptcy: a job loss, a medical problem, or a divorce. And the fact is that those are exactly the kind of calamities that the bankruptcy courts were designed to help people through." — Amelia Warren Tyagi

“Bankruptcy – the safety net that society provides us when we get in over our heads and the gift of a fresh start – the new beginning of the rest of our lives.” — Mark Shaiken, Fresh Start

Today's economy finds many families only one paycheck between solvency and bankruptcy. Yet, bankruptcy is ultimately more affor...