Under what circumstances can a sturdent loan be discharged in bankruptcy?
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Under what circumstances can a sturdent loan be discharged in bankruptcy?
I’m 58, just lsot my job and the prospects for employment in my area at my age are slim. I am separated from my wife and will probably lose my house if it doesn’t sell. Most likely I will move in to take care of my elderly mother. If I still owe $16,000 on a student loan for my son, is it possible to have this dismissed in bankruptcy under these circumstances?
Asked on June 9, 2013 under Bankruptcy Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
In *theory," if you can show extreme hardship--that you don't make enough to support yourself and have effectively no reasonable chance of making more in the foreseeable future--a government backed or provided student loan can be discharged. In practice, it is almost impossible to do so--less than 1% of such applications are granted.
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