Does filing a bankruptcy elimate an outstanding balance owed to a school that has been sent to collections?

Asked on September 13, 2012 under Bankruptcy Law, Washington


Elena Eckert

Answered 8 years ago | Contributor

An educational loan debt will generally not be discharged in bankruptcy, regardless of whether it is in collection or not. This is true as to an educational loan made or guaranteed by the government.  Generally, in order for such debt to be discharged, you will need to prove that (1) excepting the debt from discharge would impose an undue hardship on you or your dependants; and (2) that you made a good faith effort to repay the debt.  

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