If someone owes over 13000 in defaulted loans and is unable to pay them would filing bankruptcy be the best idea?
Only if you are in threat of being garnished or a lien may be placed on your property. A bankruptcy lasts as long as a bad debt. Bankruptcy just costs money. You have a better chance of disputing the loan in a few years were as bankruptcy lasts longer. Your best bet is to talk to a lawyer, but they will almost always tell you to file. Also, the laws for bankruptcy are a lot harder now.