Can some student loans be discharged in bankruptcy?
There are two ways to get student loans discharged in bankruptcy: 1) Section 523(a)(8)(A) of the U.S. Bankruptcy Code allows for the discharge of student loans if the first payment became due more than seven years before the filing of the bankruptcy, exclusive of any suspension of the repayment period. In other words, count back the years since the date the note first became due, then subtract the amount of time that you were not required to make payments. If the total is more than seven years, then the student loan debt is dischargeable. If not, it’s not. However, it’s a good idea to double check with your attorney as to your specific situation. 2) Section 523(a)(8)(B) of the bankruptcy code allows the discharge of student loans that have been due and owing for less than seven years, if repayment “will impose undue hardship on the debtor and the debtor’s dependents.” While this may sound like an easy way out, most bankruptcy judges are hard-pressed to allow a hardship discharge of stu
