Can you file bankruptcy on student loans? Yes. But the bigger question is whether you will qualify for a discharge or not. Unfortunately, most people do not qualify to discharge their student loan debt through bankruptcy. You can only eliminate this type of debt if you can successfully prove that paying back your loans will [...]
Before discharging Student Loan debt in bankruptcy, it is necessary to prove an "undue hardship". The courts have ruled that "undue hardship" means something more than "garden variety" hardship. Bankruptcy courts across the county apply different formulas when determining whether undue financial hardship exists. In Minnesota, the court uses the "totality of the circumstances" test [...]
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