Expert: Terry Leeders - 3/3/2011

Question
Is it impossible to discharge student loans in a banktruptcy case?  I am going to default on my loans.  Not by choice but I barely have enough money to live, and I have no assets.  I don't even have a car because I can't afford it.  I am in serious debt and am considering bankruptcy.  I have heard that if hardship can be proved it may be possible?

Answer
It is not impossible, but very very hard to discharge them. You need to file an adversary in the bankruptcy case, then show that you have no current, or no future ability to pay them back, to simplify the issue.

If you can work, then you are unlikely to discharge them.
Good luck.