How bankruptcy affects your student loan

Updated: Aug 27, 2019

High debt loads are not only a financial stress but can delay the time it takes individuals or couples to reach certain milestones, such as having children, getting married, buying a house etc.

While filing for bankruptcy is not an easy way out or simply a way to get out of paying your student loan it is important to know the facts.

  • You are able to include your student loan when you file for bankruptcy however, your discharge may not necessarily release you from this debt.

  • If you declare bankruptcy seven or more years after your “end study date” your student loan debts will be eligible for discharge, together with your other debts

  • A discharge from bankruptcy releases you from repaying your student loan if you filed for bankruptcy at least (7) seven years after the date you ceased to be a student.  You must contact student loan and request your “end study date”.  

  • If you have only been out of school for 5 years and you file a bankruptcy you may make an application to the court for an early discharge of your student loan debts under the “hardship provision”.  This is at the discretion of the Court based on criteria established in other cases.


Contact our office today to better understand your options.

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