Search Site
Menu
Can You File for Bankruptcy on Student Loans?

bankruptcy and student loans

Can You File for Bankruptcy on Student Loans?

For the past four decades, a general rule when filing bankruptcy was that you could not discharge debts for student loans. While this is still usually the case, there may be some situations in which it is possible to discharge these debts as part of a bankruptcy filing.

Borrowers must demonstrate that their student loan debt places undue hardship on them. The most common standard used to determine this is the Brunner Test, which requires that all of the following conditions exist:

  • The borrower cannot maintain a “minimal” standard of living based on his or her current income and expenses. The person’s dependents may also suffer if the borrower is forced to repay the student loans.
  • There are additional circumstances that indicate the state of affairs causing this undue hardship will persist for a large portion of the student loans’ repayment period.
  • The borrower has already made good faith efforts to pay back the loans.

While not all courts allow for the Brunner Test, Georgia bankruptcy courts frequently use it to determine whether a petitioner meets the standards of undue hardship.

Will you be able to prove undue hardship in your case? This answer depends largely on your financial circumstances. You should seek the counsel of a skilled bankruptcy attorney for advice on how best to proceed.

If you cannot get your student loans discharged, you may have other options to reduce the financial burden of that debt. The Institute for College Access and Success offers a variety of tips, such as choosing the right repayment option, avoiding default and exploring the possibility of consolidation. Taking the right steps now could save you considerable financial headaches in the future.

If you wish to discharge any of your debts by filing for Chapter 7 bankruptcy, meet with an experienced Georgia bankruptcy attorney at Jeff Field & Associates. Call our firm at 404-381-1278 or contact us online to schedule a free initial consultation.


Related Posts:


Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    This was a hard thing to do but Chris made it easy and explained everything in a way I understood the process. I would recommend anyone having to go through this to contact this office! Casey was great as well and the communication kept the whole tim...

    Read more

    Beth Carlin

  • google
    5.0/5.0

    The staff made a very stressful situation much easier to cope with. They treated me with kindness and respect. Chris and Laura are very professional and knowledgeable.

    Read more

    Anita York

  • lawyers
    5.0/5.0

    The Entire team at Jeff Field and Associates were so helpful throughout the entire process. They were quick with responses and handled everything. They dont make you feel bad about your decision, and provide very helpful advice. Mr. Fields was always...

    Read more

    Client

  • google
    5.0/5.0

    We started our process in October 2021, the process was fast and easy. Casey Brown was there to answer questions via email expeditiously. In 3 months our case was discharged and we are extremely thankful and excited for the future. This truly was a...

    Read more

    Joan Bunting

  • lawyers
    5.0/5.0

    I enjoyed working with Jeff and his team. They were always there to help and answer any questions that I had in a timely manner. I highly recommend Jeff Fields and Associates.

    Read more

    Client

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form