Can a Parent Plus Loan be wiped out in chapter 7?
Student loans are no longer dischargeable in any chapter of
bankruptcy unless you can prove that repaying the loan creates an
undue hardship on you or your family. Prior law allowed their
discharge once they had been in pay status for 7 years. The law
changed in the fall of 1998.
Proving hardship usually requires showing that you can't provide
a minimum standard of living for yourself and your dependents if
you have to repay the loan. Some courts will discharge part of the
loan on a showing that repaying it all would be a hardship.
Student loans are sometimes unenforceable due to school
closures, fraud, etc. Chapter 13 can provide a way to cure defaults
on student loans, or to pay them off over the course of the