How do I obtain a discharge of student loans in Chapter 13 Bankruptcy?

In California, discharging student loans through Chapter 13 Bankruptcy can be a difficult process and must be done correctly in order to be successful. It is important to remember that not all types of student loans are eligible for a discharge in bankruptcy. Most government-owned loans and private loans cannot be discharged in bankruptcy. Nonetheless, there are two ways to obtain a discharge of student loans in Chapter 13 Bankruptcy. The first way is to demonstrate that repaying the loan would cause an “undue hardship”. To do this, you must show that you will not be able to maintain a minimal standard of living if the student loan is not discharged, and that the situation is likely to persist for a substantial period of time. It is important to note, however, that this is generally a difficult threshold to meet and can be an expensive process. The second way is to successfully complete the Chapter 13 repayment plan. If this is done, any remaining balance on the student loan can be discharged. This process usually takes three to five years and requires a strict budget and regular payments to the court-appointed trustee. Overall, it is important to remember that obtaining a discharge of student loans in Chapter 13 Bankruptcy is a complex process and should not be taken lightly. Speak with a qualified bankruptcy attorney to discuss the best path forward for you.

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How do I obtain a discharge of student loans in Chapter 13 Bankruptcy?

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