The 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:
In many cases, that means providing clear records and a written attestation that explains your financial hardship in a direct and consistent way. The attestation should match the facts shown by your income, expenses, medical condition, and repayment history.
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.
A detailed attestation may also help organize the borrower's account of the hardship for the court. It does not replace supporting evidence, but it can help present the facts clearly and in one place. These cases are rare but not impossible.
Talk to Atty. Dave Falvey
860-449-1510