CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Is It Possible to Discharge a Student Loan in Bankruptcy?

Bankruptcy is a great opportunity to get a fresh start on your finances, but it isn’t the right option for everyone. One of the best ways to determine if bankruptcy is going to help you repair your damaged finances is to consider the type of debt you have. Though bankruptcy allows you to discharge, or eliminate, many types of debt, some debts are non-dischargeable. Student loan debt is often one of these types of debt.

Despite student loan debt being one of the main reasons people face financial challenges, it is often not dischargeable in a bankruptcy. Under certain circumstances, you might be allowed to discharge your student loan debt. For instance, if you can prove you are facing undue hardship and your student loan debt is adding to this or you are unable to afford the payments because of hardship, there’s a chance you’ll be able to discharge the debt.

Proving Undue Hardship in Your Bankruptcy Case

In order to prove undue hardship, the bankruptcy court uses the Brunner test, named after the 1987 US Court of Appeals decision in the Brunner v. New York State Higher Education Services Corp. case. In order to qualify for an undue hardship disqualification of your student loan, you’ll need to prove:

• You are unable to maintain a minimal standard of living if forced to repay student loan debt
• Your current financial situation will likely continue throughout the repayment period
• You have made a good faith effort to repay the loan

Though the bankruptcy court uses the Brunner test as a guideline to determine whether or not you qualify for student loan discharge, different court systems interpret hardship differently. This is why it is so important to work with an experienced attorney who is able to make it clear to the court that you do qualify as a hardship case.

In order to prove your status, you’ll also need to file a separate petition with the court regarding your hardship claim. It’s important for an attorney to assess your case, determine if you are likely to qualify, and assist you with the paperwork to ensure all of your “ducks are in a row” and you’ll stand the best chance of qualifying for undue hardship.

You can view a detailed analysis of hardship here.

Managing Your Bankruptcy Case

There might also be additional defenses you can use in your bankruptcy case to help you deal with your student loan. Every case is different and only an experienced bankruptcy attorney will be able to help you determine the best path to pursue.

Student loan debt can cause serious financial strife and lead you down a path of financial ruin. If you are struggling to make student loan payments or other debts have made it difficult to repay your student loan, we can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your options and determine the best way to get your financial life back on track.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions