For the most part, student loans are not dischargeable. However, when you file bankruptcy, your student loan will go into deferment for the length of the bankruptcy. A Chapter 7 bankruptcy usually lasts for a few months, whereas with Chapter 13, the deferment period lasts about three years. While your student loans are not dischargeable your payments can be applied to offset expenses in a Chapter 13 plan. We will help you prepare your budget for these applications.
In rare cases, after a bankruptcy discharge, you can apply for a hardship discharge of student loans. This is a separate action in Federal Court and requires a separate fee agreement. These are rare, because the applicant must have a serious medical or physical problem that precludes any type of employment.