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What circumstances does a person need to prove to have their student loans discharged through bankruptcy?

User Sebarmeli
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Final answer:

To discharge student loans through bankruptcy, one must prove undue hardship, which includes an inability to maintain a minimal standard of living, a persistent state of financial struggle, and efforts to repay the loans.

Step-by-step explanation:

To have student loans discharged through bankruptcy, a person must demonstrate 'undue hardship.' This is a difficult standard to meet, as it usually requires proving that the individual cannot maintain a minimal standard of living if forced to repay the loans, that this hardship would continue for a significant portion of the repayment period, and that the debtor has made good faith efforts to repay the loans.

Filing for bankruptcy usually involves a bankruptcy court determining whether the loans cause undue hardship through an adversary proceeding. This process is often complex, and the outcomes can vary widely depending on jurisdiction and the specific circumstances of the debtor. Considering other financial aid options like scholarships, grants, or a work-study program prior to borrowing, as well as familiarizing oneself with the Free Application for Federal Student Aid (FAFSA), can be beneficial in managing postsecondary education costs and potentially reducing the need for large student loans.

User Arnon Axelrod
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It is possible to prove that the student loan is discharged through bankruptcy. One way is to prove that it will bring a lot of hardship on the student and their dependants.

Step-by-step explanation:

It needs to be proved that the debtor cannot maintain a minimal lifestyle due to the burden. Prove that the debtor had made certain good efforts to repay the loans but couldn't succeed. Understudy advances are troublesome, however not feasible, to release in liquidation.

To do as such, you should show that instalment of the obligation will force an undue hardship on you and your wards. If the undue hardship is proved in the court then the student loan will be cancelled.

User Jim Zucker
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