What is the Likely Impact of Filing Bankruptcy on a Student Loan?

If you’re considering filing for bankruptcy, you might be wondering what impact it will have on your student loans. Unfortunately, the answer isn’t always clear-cut. Here’s what you need to know.

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When you file for bankruptcy, all of your assets and debts become part of the bankruptcy estate. This means that your student loan debt may be discharged as part of the bankruptcy proceeding.

However, it is important to note that student loan debt is not dischargeable in every instance. In order to have your student loan debt discharged, you will need to meet a very high burden of proof. You will need to show that paying back your student loans would cause you an undue hardship.

It is important to consult with an experienced bankruptcy attorney before making the decision to file for bankruptcy. An attorney can help you understand the likely impact of filing for bankruptcy on your student loan debt and can advise you on what options may be available to you.

What is bankruptcy?

Bankruptcy is a legal process that allows debtors to have their debts discharged. This means that the debtor no longer owes the money to the creditors. In order to file for bankruptcy, the debtor must first file a petition with the court. The court will then decide whether or not to grant the discharge.

There are two types of bankruptcy that are relevant to student loans: Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, the debtor’s assets are liquidated and used to pay off the creditors. Any remaining debt is then discharged. In Chapter 13 bankruptcy, the debtor enters into a repayment plan where they repay their creditors over a period of time, typically 3-5 years. After completing the repayment plan, any remaining debt is discharged.

Student loans are generally not dischargeable in bankruptcy. This means that if you file for bankruptcy, you will still owe your student loans. There are a few exceptions to this rule, but they are very rare. If you are considering filing for bankruptcy, you should speak to an attorney to see if your student loan debt would be discharged.

What are student loans?

Student loans are a type of loan that is designed to help students pay for their education. These loans are typically provided by the federal government, but there are also some private student loans available. Student loans typically have lower interest rates than other types of loans, and they may also offer other benefits, such as deferment or forbearance.

How does bankruptcy affect student loans?

Filing for bankruptcy may help you get rid of other types of debt, but it doesn’t do anything for student loans. That’s because federal student loans are not dischargeable in bankruptcy, no matter how long you’ve been paying them or how much hardship they’ve caused.

What are the alternatives to bankruptcy?

The most commonalternative to bankruptcyis working with your lender to create a new repayment plan that is right for you. This process is called “loan rehabilitation.” Loan rehabilitation can help you get your loan back on track and help you avoid default in the future.


In conclusion, filing for bankruptcy will not immediately discharge your student loan debt. However, it may be possible to have your loans discharged if you can prove that repaying them would cause you undue hardship. If your student loans are discharged through bankruptcy, you will no longer be responsible for repaying them.

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