Student Loans in Bankruptcy

[StartinOver]

Has anyone ever been successful in gaining a discharge of student loans through bankruptcy? I know that you actually have to file a separate thing to make it happen, or else it isn't considered and even ignored.

[SCF]

In order to discharge student loans in bankruptcy you have to meet a strict standard and show that you will never be able to repay the loans, and that attempting to do so would impose an undue hardship on you.  I would reccomend consulting with an attorney that is experienced in bankruptcies, and ideally has discharged student loans before (but that may be hard or impossible to find in your area), because discharge for student loans is far more complicated than other unsecured debt.

[StartinOver]

Thanks for your reply. Yes,  I'm aware of that, and it won't deter me. No, I can't afford an attorney right now and that is why I'm here asking for personal opinions.

Anyone else ever tried and failed or been successful?

[StartinOver]

I'm thinking I don't have a choice,  due to circumstances.

[SCF]

I know it's a couple years old, but I don't think there have been many changes in the standard or process since then: http://www.nytimes.com/2012/09/01/business/shedding-student-loans-in-bankruptcy-is-an-uphill-battle....

I've never seen anyone on these forums claim to have their SLs discharged in bankruptcy, and I'm sure that's just because those folks are very rare.  I would reccomend doing whatver you can to obtain at least some legal guidance - have you tried the legal aid society in your state?  Or maybe approaching a local charity about helping to pay at least some of the legal costs?  Depending on your situation, a lawyer might be willing to do the work at a reduced rate or even pro bono, and some charities will have existing relationships with lawyers who have helped others in the past.

[StartinOver]

I am aware of the Brunner test. I am aware that most people filing bankruptcy fail to discharge student loans because they are not aware they have to file additional paperwork or it is never even going to be considered. I am aware of those that do file, betwee 40-52% actually are able to get discharged. That means I have approximately a 50/50 chance of it working. If it does not work, then I stand a good chance of them being lowered. If I can't get them lowered they stand a poor chance of me paying them. I am going to hope for the best, since I really don't have much choice.  Of that small percentage of people that have gained a discharge, I was hoping to find someone who doesn't mind sharing about it. 

[StartinOver]

I recently saw on the boards of someone that received discharge on their student loans. Anyone care to share their story here?

[skigirl916]

Respectfully, I think your stats are waaaaaay off the mark. Without disclosing my profession, I don't believe for even a fraction of a second that 50% of attempts to discharge student loans are successful. It's just not true. The standard is currently very, very, if not insurmountably high. It's not just about "extra paperwork." Not by a long shot.

Why do you think you'll be able to discharge them? What are your circumstances?

[Jeff532003]

You have to prove an extreme hardship in order to discharge them and as stated above, it is near impossible. Call some BK attorneys and they'll be able to give you some idea if you stand a chance but I wouldn't count on it. Honestly your best chance of getting away from student loans is moving to a country with no expedition treaty lolol.

[Pat94108]

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@skigirl916 wrote:
Respectfully, I think your stats are waaaaaay off the mark. Without disclosing my profession, I don't believe for even a fraction of a second that 50% of attempts to discharge student loans are successful. It's just not true. The standard is currently very, very, if not insurmountably high. It's not just about "extra paperwork." Not by a long shot.

Why do you think you'll be able to discharge them? What are your circumstances?

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Agree. The OP seems to believe that people who haven't been successful didn't provide the proper paperwork. I think it's more than just paperwork. From what I have read, it's hard to have student loans discharged, and just like the Brunner case showed, not only do you have to show that you are unable to pay them back, but you also have to show evidence that your situation is not likely to change. 

Evidently, OP, I don't know your circumstances, age etc. but a friend of mine discharged his due to permanent disability. He defaulted on them a decade or so ago, and last year they started taking them on his disability check (for many years he ignored the calls, letters etc.) so he had them discharged after that. He had been on disability for most of his adult  life, or a good part of it, and there is a high likelihood his life is not going to change. He's been on disability for at least a good 15 years (he's 41 if I am not mistaken).