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Is it really true that you can't discharge a student loan debt?

Many people in the Boston area, including some professionals, may believe that it is legally impossible to discharge a student loan debt in bankruptcy, no matter what a debtor's income and debt obligations are. In truth, however, it is harder to discharge a student loan debt than it is to discharge an ordinary debt, but it is certainly not altogether out of the question.

The problem that most people in Massachusetts face is that they do not even try to get debt relief from student loans through bankruptcy, believing that doing so is not worth the effort or is a waste of time. As a result, those who are willing to try for a discharge are usually in unsavory financial situations.

However, of those few who do try to get their student loans discharged, many of them, about 25 percent, do so successfully. Another 14 percent have at least some of the debt discharged. These numbers are certainly not staggering, but they do suggest that perhaps more people would get some relief from student loan debt if they followed the procedures and tried to have them discharged.

The discharge of a student loan debt, however, does complicate a bankruptcy and does depend heavily on the facts of the case and the debtor's financial situation. This post can only relay general information that suggests more people should apply for discharge from student loans. Whether an individual in Salem should do so in their particular circumstances is a question best answered by a qualified Essex County bankruptcy attorney.

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