As a general rule, student loans are non-dischargeable in bankruptcy. This means that when you are granted a discharge in your Utah Chapter 7 Bankruptcy or Utah Chapter 13 Bankruptcy, you will still have to pay your student loan debt. Under limited circumstances, you allowed discharging your student loans. In order to discharge your student loans, you must establish that paying them creates an “undue hardship” for you and your family – basically that you cannot afford a minimum standard of living and that your situation is not likely to improve.
Receiving a discharge of your student loans is not automatic. You must file an adversary proceeding in your Utah Chapter 7 Bankruptcy and get court approval that the student loans are discharged in your bankruptcy.
The laws surrounding student loans and Utah Chapter 7 Bankruptcy are complicated and fact specific. Please call me at (801) 432-8682 to discuss your options and whether a Chapter 7 Bankruptcy will discharge your student loans.
Ryan E. Simpson
