I do not think bankruptcy is worth it for 20K. You will manage in the end. Student loans can be written off if you get SSDI, but you probably would not want to go that route. SSDI is very difficult to get and it pays very little money. State disability should not be difficult to get, but try to get the disability through the employer first. Their package - 2 years max for MI - is standard. Basically, compare what will pay more money - state or employer-provided.