Finding a way to pay back student loans is a priority for a lot of people. With the economy in the shape that it is in, it is difficult to budget the monthly payment and continue to have money for living expenses.

When you factor in children and the cost to care for them, it can become too much. This is especially true if you have bill collectors calling and sending letters constantly. In addition, you don’t want your student loans to go into default.

Some people have considered filing for bankruptcy. However, bankruptcy laws have changed and it is not as easy as it used to be to get your student loans discharged. Student loans are usually considered a non-dischargeable debt, which means that even after bankruptcy, you must pay the student loans. If you are thinking about filing for bankruptcy and want to include your student loans, it is important to know the facts.

The truth is that student loans can be discharged in bankruptcy, but getting them discharged can be a difficult task. If you decide to file for Chapter 7 bankruptcy, the only way you can get your student loans discharged is by proving that paying them is an undue hardship. An undue hardship is when you file a motion with the bankruptcy court that paying your student loans will be a hardship on the expenses of you and your family. You have to prove three things in order to even be considered for an undue hardship.

Another choice is to file your student loans as part of your Chapter 13. This way you can put collection calls and default status on halt. When you file Chapter 13, you will have three to five years to pay back your debts, including your student loans. Even better, as part of your Chapter 13, you might be able to get your monthly student loan payments reduced.

To file a Chapter 13, you will need to have a stable job and disposable income, which means having money left over after paying basic living expenses such as mortgage, utilities, and food. It is important to know that although you will paying your student loan as part of your Chapter 13, you are still responsible for the balance left over after your bankruptcy payment is over.