' Can Student Loans Be Discharged? - Law Offices of Robert M. Geller
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

Can You Cancel a Bankruptcy?

Bankruptcy is an option that can save individuals and businesses from financial ruin. However, the process can be a long...
Read More

Does Bankruptcy Clear Child Support Arrears?

Bankruptcy is a legal process that provides relief to individuals who cannot pay their debts. One common question among individuals...
Read More

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Can You File Bankruptcy with Money in the Bank?

Bankruptcy is a serious decision and has major consequences on your credit as well as your overall financial situation. If...
Read More

Will Declaring Bankruptcy Affect My Spouse?

Are you considering declaring bankruptcy? Are you married? If so, you may be wondering how it will affect your spouse....
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

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