If you are looking to discharge your student loans, it is a complex process, but not impossible.
After 1990, student loans are no longer considered “dischargeable.” This means that in order
to seek relief, an adversary proceeding is required--a lawsuit must be filed separate from the
bankruptcy case. You must prove that the payment on your student loans causes an undue
hardship. Most courts use the Brunner test to measure the burden of the debt. It is a three-
pronged evaluation that requires the following: 1) the individual and their dependents
cannot maintain a minimal standard of living if they were required to pay the student loan,
2) there must be additional factors that guarantee this poor standard of living will continue
throughout the whole payment period, and 3) the individual has made good faith effort to
pay the loans. If you can demonstrate that you meet these conditions, your student loan
could be cancelled as a whole.
There are advantages and disadvantages to discharging student loans. To better understand
if filing for an adversary proceeding is for you, it is recommended that you set up a
consultation with your local bankruptcy attorney.
