Many people believe that you can escape creditors by filing for bankruptcy.
Sometimes it is your only way out of an ever deepening debt although life can get a bit more complicated after that.
The one type of loans that are not automatically erased after a bankruptcy are student loans. They can haunt you for a very long time unless you are able to prove undue hardship because of them.
There is an interesting article in the Arizona Daily Star to illustrate this:
Student loan debt is not easy to walk away from. In fact, private and federal student loans are not eligible for discharge in a bankruptcy filing unless you can prove that paying them would produce an "undue hardship" for you and your dependents. The burden to prove undue hardship varies from state to state and court district to court district.
Read more: http://azstarnet.com/business/local/credit-care-discharging-student-loan-in-bankruptcy-requires-major-hardship/article_58538921-df60-52c2-9bf0-a07470fc07bc.html#ixzz1krD3ziq8
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