Discharge student loans in bankruptcy?

I always recommend that folks who are considering bankruptcy talk to a bankruptcy attorney to discuss their situation before taking any action.  Many bankruptcy attorneys offer free consultations.  If your primary purpose in filing for protection is to discharge the student loans (if, for example, your credit card debt is not that significant), the attorney may caution against filing.  Or, at a minimum, may suggest that you can file and get the credit card debt discharged, but you should not count on getting the student loans discharge. She may also suggest that you to go ahead with the bankruptcy so you can take advantage of the automatic stay. During the automatic stay, the period after the bankruptcy petition has been accepted and during which creditors are prohibited from attempting to collect your debts, you may be able to get your financial affairs in order even if you are not allowed to discharge the school loans.

As discussed in our other post on this subject, it is difficult to get student loans discharged unless you can demonstrate an "undue hardship."  Often, that hardship will be a physical disability or illness that prevents you from working.  If your attorney thinks you have a shot at it, she will file a motion on your behalf with the bankruptcy court.  At a hearing on the motion, you and your attorney will have to demonstrate that you made honest efforts to pay the loans, but that because of your situation, you are unable to repay the loans and maintain a "minimal" standard of living.  The court will also require that you demonstrate that your situation is permanent or likely to continue throughout the repayment period for the loans.  Hope that helps.  Good luck.