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Individuals in Ohio may think that they cannot discharge their student loans in a bankruptcy, but this common assumption is not always true. In some circumstances, private student loans can be discharged along with other types of debt.

For example, loans made to schools that are not accredited by Title IV of the Higher Education Act are not protected. Although any type of school might be unaccredited, this lack of accreditation may be particularly common with vocational, trade or flight schools. Students at the school must also have access to Title IV federal loans.

Loans must meet other qualifications as well. They must be paid to people who are eligible students at the time, and they must be used for qualified educational expenses. The IRS determines what these terms mean, and if these elements are not in place, it may be possible to discharge the loans.

There are other common misconceptions about bankruptcy in addition to the belief that all student loans are protected. For example, some people may think that bankrupt individuals lose all their possession including homes and cars. However, it may be possible to keep a number of assets despite declaring bankruptcy. Some people may also believe that bankruptcy is for people who are financially irresponsible, but unemployment, medical debt and other unforeseen circumstances may make bankruptcy necessary. Bankruptcies also do fall off credit reports after a certain number of years, and it is possible to begin rebuilding credit prior to that time. Individuals who have private student loan debts or other debts that they cannot repay may wish to speak with an attorney who might be able to discuss the options including Chapter 13 or Chapter 7 bankruptcy.