It is theoretically possible to have all of your debts wiped out except for your student loans when you file for bankruptcy.

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This was the biggest year ever on record and 2012 seems poised to again break the lending record.

After making an adjustment for inflation, college students are borrowing roughly twice as much as they borrowed 10 years ago. It shows that there is a big demand for these relatively low interest loans and easy approval methods.

The bankruptcy court does allow student loans to be discharged in some extreme cases.

In order to have your student loans discharged, you’re going to have to prove that they keep you from enjoying even a minimum standard of living.

This essentially gives you the opportunity to get a fresh start financially.

Your creditors have to write off the debt and they cannot contact you to try to collect the debt at any point in the future.

The type of bankruptcy that you file will determine what happens to your debt once you file.

If you file for a Chapter 13 bankruptcy, you will get started with a repayment program that is administered by the court.

While Chapter 7 does provide you some major relief when it comes to getting rid of debt, it might not do much for you in regards to student loans.