Reported 2 days ago
Navigating student loans and bankruptcy can be complex, especially since discharging these loans requires proving 'undue hardship' in a separate adversary proceeding within bankruptcy. Borrowers must choose between Chapter 7 and Chapter 13 bankruptcy, with federal loans eligible for discharge under specific conditions. Recent changes by the Department of Justice have made the process somewhat easier, but applicants still face significant hurdles and potential long-lasting effects on their credit scores. Consulting with an attorney is advisable to navigate the strict legal requirements involved.
Source: YAHOO