The Harsh Truth About Student Loan Discharge
Under current U.S. bankruptcy law, most student loans (federal or private) can't be eliminated through Chapter 7 or Chapter 13. In 2005, changes to the Bankruptcy Code made private student loans just as protected as federal loans. Discharge is possible, but only under extreme conditions, and very few people qualify.
Bankruptcy courts use a legal standard known as the Brunner test to decide if student loan debt can be erased due to "undue hardship."
Talk to Atty. Dave Falvey
What Counts as Undue Hardship?
To meet the Brunner test, you must prove all three of the following:
Even living below the poverty line or dealing with a disability is often not enough. Courts have denied discharge even in cases involving permanent medical conditions and total disability. Judges apply these rules strictly and rarely grant relief.
Talk to Atty. Dave Falvey
Then What You Can Do Instead?
Although bankruptcy may not eliminate student loans, it can help reduce pressure by discharging other debts like credit cards, medical bills, and personal loans.
This frees up income to help you stay current on student loans. If your situation is truly severe, we can assess whether you meet the Brunner test. In some cases, we may still file an adversary proceeding within your bankruptcy case to ask the court to discharge student loans. These cases are rare but not impossible.
Talk to Atty. Dave Falvey
860-449-1510