@Izzy78 - That is correct and that is why people can no longer declare bankruptcy right as they get out of college in order to avoid paying debt right away.
Most of the time when people get out of college they are unemployed right away because they have spent their last four years on their studies and have simply not gotten a job with their degree yet.
This is why the normal thing to do was to declare bankruptcy on student loans so they did not have to pay thousands in debt right away.
However, the government determined this to be an unfair cop out and decided that no one can declare bankruptcy on their student loans, yet someone can declare bankruptcy for failing at running a business.
Although there are cracks in the system I feel like the bankruptcy courts are always reforming and changing for the better and becoming stiffer on people who take advantage of the system. I really wonder if besides student loans there are other such things that one cannot declare bankruptcy on?