In general, student loans cannot be discharged if you file for bankruptcy unless you can show that paying for your student loans debt creates an “undue hardship” on you or your family. To discharge your student loans entirety is not an easy feat to accomplish however. To prove that you would have an “undue hardship” requires more than a simple showing that you are unemployed. In fact, you need to fulfill 3 requirements to show that you will face an “undue hardship”.
First, you must prove that you cannot maintain a “minimal standard of living” for yourself, as well as your dependents, if you were obligated to repay your student debt. You should note that the minimal standard of living varies from state to state. Second, you must prove that you will not likely maintain a minimal standard of living over the course of the repayment plan. Last, you must prove that you have made good faith efforts to repay the loans. This means that you have made constant attempts to find employment or even minimize your living expenses.
In these harsh economic situations, there will undoubtedly be a lot of people who will not be able to maintain a minimal standard of living. For this reason, if more and more people wish to discharge their student loans, the standard on “undue hardship” might become more restrictive. In any case, if you feel that you are in fact in a grim financial situation you may want to consult an experienced bankruptcy attorney to further assist you.