Expert: Terry Leeders - 7/18/2007

Question
Can I file bankrupt on a student loan that I received in 2001 with the help of a co-signer?

Answer
Hi Shana,

Unfortunately, student loans, more precisely 'debt for educational purposes' are generally non-dischargeable, unless you can prove that it is an undue hardship to repay it.  To do that, you would have to satisfy the 'Brunner' case test: 1. you paid it when you could in the past, you have no present ability to repay it, and you have no future ability to repay.

Therefore, 99% of the time, student loans are non-dischargeable in chapter 7 bankruptcy because of this tough standard to beat them.