- Chapter 7 at a glance
The standard
Undue hardship, shown in a separate case within the bankruptcy
Federal loans
Reviewed under a Department of Justice attestation process
Private loans
Some are not protected and discharge like other debt
Chapter 13
Stops collection while the plan runs
Other routes
Disability, closed school and borrower defense discharges
Partial discharge
Possible, and some cases settle for part of the balance
Can student loans be discharged?
Yes, but not automatically. A normal Chapter 7 or Chapter 13 discharge does not cover most student loans. To discharge them, we file a separate case inside the bankruptcy, called an adversary proceeding, and show that repaying would be an undue hardship.
What undue hardship means
Courts generally look at three questions:
- Can you keep a minimal standard of living for yourself and your dependents while repaying?
- Is that situation likely to continue for a significant part of the repayment period?
- Have you made good faith efforts to repay?
Full or partial discharge is possible. Each case turns on its facts, and we will tell you plainly whether yours is worth pursuing.
Federal student loans
Since late 2022, federal loan cases have been reviewed under a standard process. The borrower completes an attestation covering income, expenses and circumstances, and the government decides whether to support discharge.
Private student loans
Some private loans do not meet the legal definition of a qualified education loan, for example loans that were more than the cost of attendance or were for a school that was not eligible. Those can be discharged like credit card debt, without proving undue hardship. We review the loan documents to check.
What Chapter 13 can do
Even when student loans are not discharged, Chapter 13 stops wage garnishment and collection while the plan runs, and lets you deal with your other debts first so the loan payment is easier to manage when the case ends. Interest usually continues to build during the plan.
Options outside bankruptcy
- Income-driven repayment for federal loans
- Total and permanent disability discharge
- Closed school and borrower defense discharge
- Public Service Loan Forgiveness for eligible employment
Sometimes these do more than bankruptcy can, and we will tell you if that is the case.
Find out what your case costs
Your details are private and are never shared. No obligation.
Or call
