Discharging Student Loans

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.