An Exception to Every Rule: When Can You Discharge Student Debt?
posted on 6/15/09 in Bankruptcy Case Law and Analysis
It is generally not a surprise to anyone that has ever taken out a student loan that their student loan cannot be discharged in bankruptcy. However, as with all rules, there is always an exception. In all cases involving a student loan, the Bankruptcy Court must make findings addressed to whether the loan was made, issued, or guaranteed by a entity covered section 532(a)(8) of the Bankruptcy Code, and whether excepting the debt from discharge would impose an ‘undue hardship’ on the debtor and dependents. 11 U.S.C.
