Can old delinquent student loans be discharged in bankruptcy court?
Old Delinquent Student Loans Can Be Discharged in Bankruptcy Court Many people are unaware that old delinquent student loans can be discharged in bankruptcy court. This is because student loans are generally not dischargeable in bankruptcy proceedings. However, there are certain exceptions to this rule. One exception is if the borrower can demonstrate that repaying the loan would cause an undue hardship. This is a complex standard to meet, but it is possible. The borrower must show that they cannot maintain a minimal standard of living if they are required to repay the loan. They must also show that their financial situation is likely to remain the same in the future. Another exception is if the borrower can show that the loan was obtained fraudulently. This could include situations where the borrower was misled about the terms of the loan or the school they were attending was not accredited. If a borrower can successfully demonstrate one of these exceptions, they may be able to have t...