Filing personal bankruptcy to prevent refinanced student loan personal debt are a two-action processes. Basic, you file a personal bankruptcy situation: sometimes a chapter eight otherwise Part 13 bankruptcy proceeding. You then file a unique lawsuit to prove that paying back your own finance may cause your an unnecessary hardship.

The release acquisition you get throughout the courtroom at the bottom of case erases your credit card debt, medical debts, unsecured loans, and so on. But you will end up being caught for the refinanced beginner personal debt if you do not prove to the latest personal bankruptcy legal one paying the fresh new funds may cause both you and your dependents an excessive adversity.

Giving up so it evidence is actually much harder to possess government figuratively speaking than just it’s to have individual money. Continue reading →