When it comes to filing bankruptcy in New York, one of the top things you have probably been told is that you cannot discharge your student loans. Many people like to say that your student loans will outlive you because there is not way to get rid of them expect to pay them off. While it is generally true that you cannot discharge student loans in a bankruptcy, there are some exceptions.

U.S. News and World Report explains that the law does have some exceptions for discharging student loans in a bankruptcy. Before you try to discharge your loans, though, you should check into repayment plans. The Income-based repayment plan may calculate your finances so you owe nothing. As long as you are on the plan continuously and follow the rules, your loans automatically are forgiven at the end of your term, which may be 20 or 25 years. If you qualify for this type of repayment, then you cannot try to use bankruptcy to get rid of your loans, and you should not need to since this will make repayment not an issue.

The only real way to dismiss your student loans through bankruptcy is by proving that paying the loans causes you undue hardship. Essentially, you must prove that your income is so low and your payments are so high that you cannot take care of your daily needs. This includes showing that you cannot get a payment plan that will help ease the burden.

The reason why so many people think you cannot discharge student loans through bankruptcy is that there are many repayment plan options that typically will bar you from being able to get rid your loans through bankruptcy. This information is for education and is not legal advice.