My guess is to avoid the possibility of the creditor claiming that you took out the loan after already knowing that you were going to declare bankruptcy. The 4

My guess is to avoid the possibility of the creditor claiming that you took out the loan after already knowing that you were going to declare bankruptcy. The 4 on-time payments make it look like you tried to pay the loan back but just couldn't afford it. If no payments were made at all, it would be easier to prove that there was intentional fraud. If such is proven, it may be impossible to wipe the loan during bankruptcy.