Are Student Loans Dischargeable in Bankruptcy?

Although it can be challenging to discharge student loans in bankruptcy, it is certainly not impossible if you can demonstrate to the Court that to repay them would cause undue hardship to you. 

The Court requires a debtor to meet all of the following three criteria in order to discharge student loans:

(1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for  yourself and your dependents if forced to repay the loans;
(2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and
(3) the debtor has made good faith efforts to repay the loans. 

If you want to try to discharge a student loan in bankruptcy, you need to bring a separate action within the bankruptcy case. In the complaint, we can ask the Judge to rule that your student loan is dischargeable.   

If you have questions about whether you might be eligible for a discharge of your student loan debt, please all our office and set up a free consultation to discuss your situation. There are various options available to deal with your student loan debts inside and outside of Bankruptcy.

Please also see the following primer designed to provide an introduction to student loan debt: