Can I discharge my student loan debt in bankruptcy?

Generally speaking, student loan debt cannot be discharged in bankruptcy in South Carolina. According to the U.S. Department of Education, student loan debt is not dischargeable unless the borrower can demonstrate undue hardship or other extreme circumstances. Generally, this means that the borrower would need to prove that repayment of the student loan debt would cause him/her financial ruin or extreme hardship. The court will look at various factors such as the debtor’s current and likely future income, the extent of the debtor’s assets, the debtor’s age and health, the debtor’s family situation and responsibilities, and the debtor’s past and likely future expenses. It is important to be aware that even if a bankruptcy court allows a debtor to discharge student loan debt, it is the exception and not the rule. The U.S. Department of Education has stated that “the vast majority of student loan borrowers” will not qualify for discharge. Therefore, if you are considering filing bankruptcy in South Carolina and have student loan debt, you should consult with an experienced bankruptcy attorney to discuss your options.

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