Discharging student loan debt in a bankruptcy case has been an almost impossible feat for most filers. That is, unless they are able to meet the undue hardship requirements. However, a new bill named the Student Borrower’s Relief Act of 2019 could potentially remove those roadblocks that have prevented borrowers from receiving relief in the past.
Bankruptcy offers the filer a fresh start where the individual can rid himself or herself of financial burdens that have been weighing him or her down for years. These debts normally include unsecured debt, including credit cards, personal loans or medical bills. However, if the bulk of the person’s debt is student loans, the filer would normally end up in the same situation even after the bankruptcy was over. While medical debt and credit card debt may have been discharged, the borrower would end up still carrying a large amount of debt. It is for this reason that many borrowers might avoid bankruptcy, seeing it as a no-win situation.