Student Loans and Bankruptcy

IMPOSSIBLE, to wipe out, or just about….you might if you are permanently disabled…..Recently a court refused to allow the discharge of $300,000 plus in student loans for a young lawyer earning under $50,000 stating that it was NOT an undue hardship on this young lawyer to pay back these loans…and that he was intentionally not earning more money to avoid paying back these loans! Talk about out of touch judges! It didn’t help the young man that he had never made any payments on the student loans…..

The burden is on the debtor to prove that it would be an undue hardship on himself and his family to be forced to pay the student loans, and if you are young and can work, I don’t think any Judge at least in the Northern District of Illinois will grant you a discharge of those nasty student loans. Warn everyone you know….be careful about how much you borrow!