Legal Question in Bankruptcy in Wisconsin

Bankruptcy Discharge of Student Loans

Student loans are generally not dischargeable in a chapter 13 bankruptcy unless an adversary proceeding (separate lawsuit within the bankruptcy court) is successfully prosecuted by the debtor on the grounds of �undue hardship.� This was not always the law--in decades past, older student loans could have been automatically discharged in some types of bankruptcies. I believe, however, that those laws were changed within the last ten or fifteen years. I would need to research these dates in order to answer your question. However, you may still retain the option of reopening your bankruptcy in order to bring the adversary lawsuit against the lender. This, however, will generally be a far more expensive and time consuming undertaking than the bankruptcy itself, often with very uncertain results. Most of the successful undue hardship cases involve cases of severe medical disability of the debtor or a dependant. Any debt which is not discharged can again be collected once the bankruptcy ends.