Can you file for bankruptcy on personal student loans?

I have about $110,00 in defaulted personal student loans and there is a cosigner on the account too. She only receives a social security check every month and I have no income right now except for a welfare check. Can I file for bankruptcy on these loans? And if so, does my cosigner have to file for bankruptcy as well?

Asked on June 9, 2009 under Bankruptcy Law, California

Answers:

N. K., Member, Iowa and Illinois Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You can file for bankruptcy but the student loans will only be discharged if you can show that you and your dependents will suffer "undue hardship" if forced to pay back the loans.

Courts use different standards when determining what is "undue hardship."

The cosigner on your loans is also legally responsible for the loans. It is her choice as to whether she wants to file bankruptcy. If her only form of support is social security, it is unlikely that she would be pursued to pay back the loans. But she must consider the possibility that legal action may be taken against her.


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