Can I include a defaulted student loan in my bankruptcy? 4 Answers as of August 27, 2010I have not been able to pay back my student loans. After graduating, could struggled to find a job and ended up taking one that offers only meager pay. This income is not even enough for me to live on, let alone pay back my loans. If I file for bankruptcy, will a defaulted student loan held through the Department of Education be included?
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If by included you mean discharged the answer is no unless you can prove, after trial, undue hardship as that term is defined by the courts in your jurisdiction. This is a very difficult standard to meet, but you should discuss the option with your attorney.
Answer Applies to: California