A Bankruptcy Judge Has Thrown Out a Borrower's Student Debt. That's a Big Deal.
Student loans rarely get discharged in bankruptcy, so this could set a pretty important precedent.
Many people who take out student loans inevitably get in over their heads, and when that debt, coupled with other types of debt, starts to be too much, bankruptcy can seem like a viable solution.
Filing for bankruptcy is not a decision to be taken lightly as it has long term financial implications. While there are several types of bankruptcy, Chapter 7 and Chapter 13 are the two most common for individuals. Chapter 7 is a personal liquidation in which your assets are sold to pay off your debts to the greatest extent possible, and whatever portion of your debt can't be paid is wiped out. Chapter 13 is a reorganization of your debts; its purpose isn't to eliminate your debt, but to help you repay it in a more doable fashion.
Source Fool.com
