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 of Paula Greenway at (205) 324-4000.

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