Can I Discharge Scholarship In Bankruptcy After I Drop Out?

I got a scholarship for a college but then I had to drop out and now the college says that I have to repay that scholarship. Can I just charge that debt in Chapter 7 bankruptcy?

The bad news is you can’t discharge that in Chapter 7 or Chapter 13 because that is considered an obligation to repay a scholarship or a stipend or an educational benefit and the bankruptcy specifically says those are the kind of debts that cannot be discharged in bankruptcy. They are considered on par with other student loans so that is a thing that you’ll have to plan to repay even if you decide for other reasons to file bankruptcy.

Thoughts from a Maryland Bankruptcy Lawyer