Can student loans be discharged in a bankruptcy?

During a bankruptcy filing, filers typically cannot discharge their student loans. However, there are two exceptions to this general rule.

First, a student loan may be discharged if it is not guaranteed by the government or is not associated with any program that is part of the government or a nonprofit.

Second, the loan may be discharged if repaying the loan will “impose an undue hardship on the debtor and the debtor’s dependents,” according to Alabama bankruptcy law.

If you have questions about which debts may be discharged during a bankruptcy, contact the Birmingham bankruptcy attorneys Greenway Bankruptcy Law and Paula Greenway at (205) 324-4000.

Paula GreenwayPaula Greenway

Paula Greenway is a native of Birmingham and has focused her practice on consumer bankruptcy since 1996. She is licensed to practice law in all jurisdictions throughout the State of Alabama. Paula has handled over 5,000 bankruptcy cases ranging in complexity throughout her career and prides herself on being able to come up with creative solutions to her clients’ financial issues.