Bankruptcy: How To Discharge Student Loan Debt

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Bankruptcy is a financial remedy reserved for frantic situations. Student loans are the only form of consumer debt which have considerably different bankruptcy rules. Before 1978, any student loan debt , whether it was private student loans or federally funded loan, was dischargeable in bankruptcy, without any exceptions. Eventually in 2005, a new law was passed to avoid almost 100% of private student loans from qualifying for bankruptcy discharge. Student loans are generally non-dischargeable in bankruptcy. This means that after your bankruptcy wipe away all your other debts, you still have to pay student loan debt. To discharge student loan in bankruptcy one must show undue hardship on paying the debt, a standard that is very difficult

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