The starting point is that when you file a bankruptcy, you are required to list all of your assets and all of your debts.
So, yes, you have to list a student loan obligation. However, the real question is: Can a student loan debt be discharged in a bankruptcy.
The short answer is Yes in certain very very limited circumstances. The reality is unfortunately for the vast majority of people that you will NOT be able to discharge a student loan debt. There are many reasons for this. The first is the cost to attempt to discharge the student loan debt. You actually have to file an adversary proceeding in bankruptcy court and have an actual trial on the matter. The cost varies greatly depending on the situation, but, you are looking at spending at least $15,000 or more to conduct a trial, call witnesses, and engage in all the legal procedural items that are required.
Second, the law is not on your side either.
Here is how you can get debt from a student loan discharged in bankruptcy:
Over the past 27 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situations. We can stop your garnishment and change your monthly payments for all your combined unsecured debt, and if you have had more than $600 garnished within the last 90 days, we can get all of the money back in most cases. But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.
About the Author
Chris served on the Board of Directors for Habitat for Humanity
Seattle/S. King County for 10 years and served as Vice President
of the organization during part of that time. Read More