Discharging Student Loans: Blindness and Permanent Disability Not Un...

From time to time I receive inquiries from people seeking to discharge a student loan in Chapter 7 bankruptcy. Student loans can only be discharged for “undue hardship.” Undue hardship in this context means things are really, really bad. To illustrate just how bad things have to be before a student loan can get discharge you should read a blog post by Minnesota bankruptcy attorney Craig Andresen about an Ohio bankruptcy court decision.

This court denied the discharge of a student loan for a debtor who was legally blind and permanently disabled. Consider this guy’s situation before you think about discharging your student loans in Chapter 7 bankruptcy. Also, because of the difficulty discharging student loans be prepared to pay your bankruptcy attorney extra legal fees to file and prosecute your petition to have your student loans wiped out under the undue hardship exception.