CHAPTER7BANKRUPTCY

Chapter 7 bankruptcy generally makes it difficult to pay off student loans. It must meet the "undue hardship" standard, which requires evidence that the loan causes undue hardship that prevents the borrower from maintaining a minimum standard of living.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy allows you to create a debt restructuring payment plan. Student loans are usually non-repayable, but they can be built into your repayment schedule, making it easier to pay off your debt over the long term.

Massachusetts follows the Brunner Test to determine if you can pay off your student loans in bankruptcy. This test requires evidence of three conditions: (a) the debtor is unable to maintain a minimum standard of living;

(b) there are additional circumstances that indicate that this situation is likely to continue for a significant portion of the maturity period; (c) the debtor has made good faith efforts to repay the loan;