Are student loans included in bankruptcy? by Wisconsin Bankruptcy Attorney
I get this question frequently, as most of my clients owe some form of student loans. The short answer is, no, federal and private student loans are not dischargeable in bankruptcy; and, you will likely need to repay this debt. However, the following is an exception:
- If you can establish “undue hardship,” your student loans will be discharged. However, “undue hardship” is a difficult standard to meet. The Court, though a rather lengthy process, will determine if you have an undue hardship. You will want to hire legal representation if you believe you may qualify for this exception;
If you are struggling to pay your student loans, contact your lender directly and ask about programs they have available to assist you. Keep in mind, if you default on your loans, the government can use collection methods including, intercepting your tax returns, offsetting your social security disability payments, garnishing wages, or filing a lawsuit against you.
If you think you may need to file bankruptcy, and you live in southeast Wisconsin (Germantown, West Bend, Wauwatosa, Brown Deer, Mequon, Cedarburg, Sussex, Lannon, Menomonee Falls, and surrounding areas), please contact our office for a free 1/2 hour consultation.