Can I file Chapter 13 bankruptcy with a student loan?

Asked on May 25, 2012 under Bankruptcy Law, Louisiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Unfortunately, if your student loan is government backed or government insured, you almost certainly can not discharge it; student loans are unaffected by bankruptcy except if the filer can show extreme hardship. Extreme hardship essentially means that paying the loan reduces you to poverty AND that there are no reasonable prospects for your economic situation improving (i.e. you won't get promotions or advance and earn more over time). This is a very hard showing to make; the last set of statistics I saw indicated that less than 1% of filers who claim hardship were able to discharge their student loans.

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