It is common knowledge that you cannot get rid of your student loans by filing bankruptcy in New York. However, what you may not know if there is an exception to that rule. You could be able to erase your student loans when you file if you can prove undue hardship. The concept of undue hardship, though, is not straightforward, nor is it easy to prove, according to the American Bar Association.

In general, undue hardship in this situation means that paying your student loans would put you in a financial situation where you could not afford your regular expenses, such as housing and food. You also have to prove that undue hardship would still exist even with payment plan options since there are quite a few, including income-based repayment, which could render your monthly payment due as zero.

This makes it incredibly tough to meet the requirements for proving undue hardship. In addition to proving that it would cause financial distress in any payment plan situation, you also must show that your financial situation is not likely to improve and that you have tried to keep up with payments and done everything you can to make payment arrangements.

For most people, it is very difficult to not be able to find a repayment plan that will fit your budget. This means that proving undue hardship and being able to erase your student loans through bankruptcy is very rare. So, you should never rely on this as a way to get rid of student loan debt. This information is for education only and does not constitute legal advice.