I am afraid that while student loan debt may be discharged in bankruptcy, it is rarely if ever done. In order to have them discharged you have to prove pretty much that you are indigent and unable to even pay your ordinary bills.
The courts use the Brunner test which requires a showing that 1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the student loans; 2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and 3) the debtor has made good faith efforts to repay the loans. (Brunner v. New York State Higher Educ. Servs. Corp.
, 831 F. 2d 395 (2d Cir. 1987).
Private and subsidized student educational loans are treated the same by the bankruptcy court and very rarely discharged and the burden of proof
under Brunner is fairly high for people to ever meet which is why they are rarely discharged.
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