My question involves bankruptcy in the state of: ILLINOIS
I have an exorbitant amount of student loans (both federal and private -- i.e., not on the NSLDS).
I understand most student loans cannot be discharged in bankruptcy, and those rare cases that have been successful have used the Brunner Test to determine undue hardship. That being said, I have read on a few websites that student loans used for tuition, books, fees, etc. cannot be discharged, but that student loans used for OTHER non-school related purposes (i.e., clothes, home remodeling, medical expenses, etc.) CAN in fact be discharged. Is this true?
For instance, let's say I have a private student loan for $60,000, and $30,000 of it went to the University for tuition and other fess, and the other $30,000 was money I pocketed and used for everyday living expenses, vacations, clothes, etc. (why would I do this?? because I was a very ignorant 18 year old and did not grasp the impact of my actions). Nonetheless, this happened. If I can prove a portion of the student loan money was not used on school-related purposes, is there a greater likelihood of having that portion discharged in bankruptcy?
Thank you for your time and help. Please let me know if you would like any additional information.
(Note: I understand this is my debt and my responsibility to pay back, and so forth. And believe me, if I had the money, I would. I would not be thinking about filing for bankruptcy if I was not already in a poor financial state with over $200k in student loans)