The federal government has within the last few years taken a look at the bankruptcy laws and student loans. The laws are written so that student loans are almost never discharged by the courts in bankruptcy. This is to prevent students who might run up large student loan debts from benefiting from their education and not ever having to pay for it. A student loan cannot even be considered for a bankruptcy discharge until it has been in repayment for seven years. This means active repayment, periods of grace, deferment or forbearance don’t count as part of the seven years. There is no statute of limitations on student loans, the only possible bankruptcy discharge is in the case of hardship which must be proved by the person filing in a separate court hearing. If you file a bankruptcy, when it is over your account is returned to regular payment status. If you are considering bankruptcy, you should speak with an attorney who is familiar with student loans.

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